For budding and non experienced traders, the many trading platforms and software that are out in the market may confuse them.
If you are someone who purely relies on advertisements and hearsays then searching for the best trading software will surely give you a hard time.
For today’s trading tutorial, we will give you the basics of trading softwares.
What are Trading Softwares?
Have you ever come across the terms MetaTrader and platforms in your research? Well, these terms are relevant to our topic as they are regarded as Trading Softwares.
These are computer programs that are installed in your computer to perform financial trading and analysis for instruments such as stocks, options, futures, or currencies.
Most of the time, these softwares are given by brokerage firms to their clients but there are also those that are downloadable for free.
Types of Trading Software
1. Paper Trading
Risks are always involved when trading. Thus, traders would always want to make sure that their transactions and their assets are kept secure.
One of the ways to do this is via paper trading. This trading software is designed to rehearse their trading skills without the involvement of money.
2. Programmatic Trading
This software type allows a trader to look back into the past performances of their automated trading for review and re-strategizing their plans.
With its name alone, it can be derived that programmatic trading softwares can automatically performs tasks in the market even without constant manipulation of the user.
3. Fundamental Analysis
A trading software that gives basic information and updates on financial statements, analyst ratings, and other proprietary tools for investors.
4. Technical Analysis
This type provides tools that are necessary for technical traders. These tools involve interactive charting and patterns such as trend lines and shapes, technical indicators like moving averages or momentum oscillators.
5. Trade Placing
This software performs in the market on behalf of the trader. Thus, a trade placing software can do place trading and order taking.
At the same time, traders and other users can also benefit from its real-time quotes and view. Moreover, trade placing has the ability to calculate win rate and average profit/loss on closed trades.
As a trader, it is a must for you to be skilled enough to distinguish each difference in every software so that you would be able to sort out which among the offers given by your brokerage firms should you avail of.
Expert traders on the other hand have probably realized that most of the types of software are found in the MetaTrader platform.
This then means that MT platform creators, Metaquotes, have proven that they can help each trader to enjoy and easily manage a diversified portfolio with the help of these softwares on our list.
One should also remember that these softwares are equipped with application programming interfaces, or APIs that allow the linking of multiple softwares.
Thus, trading is really going to be easier, faster and convenient with the help of API capable software installation