Online trading

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Online Trading

The act or practice of buying and selling securities over the Internet. Generally speaking, online trading occurs when an investor makes an order to a broker online; the broker then executes the order through the ordinary means. Online trading became more common in the 1990s as more brokerages offered their services online, often for a small fee rather than a commission on the trade. Online trading should be distinguished from electronic trading, which occurs on an exchange. See also: Discount brokerage.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

Online trading.

If you trade online, you use a computer and an Internet connection to place your buy and sell orders with an online brokerage firm.

While the orders you give online are executed immediately while the markets are open, you also have the option of placing orders at your convenience, outside normal trading hours.

Dictionary of Financial Terms. Copyright © 2008 Lightbulb Press, Inc. All Rights Reserved.
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