ONLINE TRADING
•It is the trading over the net i.e., E-trading
To overcome the wastage
of time consumed and inefficient operations of the traditional method and the
limits on trading volumes the NSE has introduced a nation-wide on line fully
automated Screen Based Trading System (SBTS). Now, other stock exchanges have
been forced to adopt SBTS and today India can boast that almost 100% trading
take place through electronic order matching. Under SBTS, a member can punch
into the computers quantities of securities and the prices at which he likes to
transact the transaction. It is executed as soon as it finds a matching sale or
buys order from a counter party; Thus, technology is used to carry the trading
platform from the trading hall of the exchanges to the premises of the brokers.
NSE has carried the trading platform further to the PCs at the residence of the
investors through the internet and the hand held devices through WAP for the
convenience of the mobile investors. This system also provides complete market
information on-line. The market screens at any point of time provide complete
information as to
(1). Total order depth in a security
(2). The best five buys and sells in the market
(3). The quantity traded during the day in that
security
The high and the low price for each security
(5). The last traded price for a security etc.,
1 BSE BOLT SYSTEM, BOLT:
(Bombay on line
Trading) has been introduced in the Bombay Stock Exchange. All the
scrip‘sarebeingtraded through BOLT. Many small companies in India re finding it
difficult to raise adequate capital through stock exchanges as the conditions
stipulated by them could not be fulfilled. The companies must have run for
minimum three years and they must have earned profit and the minimum capital
requirement for listing is also quite high which is at present is Rs.5 Crores.
Hence, promoting a new stock exchange with flexible conditions, the small and
medium companies in India will be able to raise sufficient capital, once these
companies enlarge their resources, they can list themselves in the regular
stock exchanges.
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