Jul 05

If you are new to the online trading industry and wish to forego the older ways that generally require a brokerage to conduct share trades on your behalf then direct access trading may be for you. Seasoned veterans in the industry can also benefit from this system of trading electronically. Using direct access trading does require you to be very specific about your purchases because of a reduction in room for error. However, it is the best option available for those who have knowledge of how the market works. Direct access trading is generally regarded as the best way to ensure your purchase does not suffer from any excesses due to slippage.

Direct Access Trading People who take advantage of direct access trading when trading online are those who want to get their shares bought and sold in the quickest possible manner. Because direct access traders give the buyer a direct line to the market – they are able to conclude their transactions in a couple of seconds. These people include day traders who wish to buy shares and sell them over the course of a single day. Day traders focus on buying in large volumes and then selling them quickly in order to capitalise in the change in stock prices over the course of a single day.

Event-based traders can also take advantage of the speed that direct access trading affords them. Event-based traders are reliant on buying stocks because of a specific event that may have bought the price of shares down for a specific company. Because the event may be based upon some news that soon becomes irrelevant the stock is likely to recover exceedingly fast. This gives the event-based trader the upper hand. They are able to buy and sell a stock over the course of an hour to hopefully make a profit.

preload preload preload