Online trading
Online Trading, Also known by the English acronym TOL , it is the buying and selling of financial instruments via the internet. It was born in Italy only in 1999 , when the " New Consob Regulation for the implementation of the Consolidated Law on Financial Markets " regulated its aspects.Main information about Online Trading
This service allows precisely the buying and selling online for financial instruments such as shares , bonds , futures , government bonds, etc. The advantages in using this kind of online services are the lower commission costs required of the investor and the possibility of the latter to be able to be well informed about the performance of a particular stock or stock exchange in general (the display of graphs and useful information on the securities) to make the investment choices with more data. This type of practice includes various ways of operating by investors.Main types of Trading Online
On the basis of the time horizon, scalping will be performed , ie the opening and closing of positions on various financial products (in most cases, shares) in a very short period of time, in the order of a few minutes; those who operate with a daily time horizon are called day traders , while open traders enter the market in the "random" phase. To highlight the existence of high frequency trading, which uses algorithms to enter and modify orders at very high speeds. This phenomenon is being examined by the competent control authorities for possible distorting effects in the conduct of negotiations. The so-called flash orders are associated to the high-frequency negotiation , systems able to systematically beat traditional operators over time, as well as other strategies, such as those called Pinging / Smoking / Layering / Spoofing, which simulate market situations with the sole purpose of traditional operators to perform wrong operations as a reaction to non-real stimuli.Risks of Trading Online
In Italy there are many companies able to carry out this type of activity, offering real platforms. Since it is still speculation , before relying on one of these it is a rule to remember that you are dealing with a high level of risk service. The companies that provide this service are regulated by CONSOB , it is advisable to rely on them in order not to incur payment problems or frauds.For the development of technologies and the absence of limits on the number of daily operations by the individual investor, it is an activity that can develop unknowingly dependence as it easily leads private individuals to increase both the time spent and the number of trades with the suggestion and the illusion of dedicating oneself to a work activity that, on the contrary, is often the source of even high losses.
According to this phenomenon, in 2018 ESMA limited the leverage applicable to online trading accounts
Source : wikipedia