Online Trading

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.