Electronic Trading Platform in Hong Kong
What is an electronic trading platform?
If you want to enter the world of trading, you need a platform to do so. The trading platform is a multifunctional tool used by all players without exception. With it, the trader instructs the broker to open or close an order.
In addition, the electronic trading platform serves for:
- Monitoring current prices of financial instruments in 24/7 mode;
- Monitoring of important economic events using a built-in calendar;
- Management of dozens of orders in a couple of clicks;
- Conducting complex technical analysis;
- Video-training in trading and investing;
- Mobile application for continuous monitoring, etc.
In other words, a platform is an online commerce system that uses computer software to execute trades in a fully connected environment.
Transactions on the brokerage site can be made in large quantities at the best rates with low commissions.
The platform offers a number of unique features that allow investors to trade successfully in multiple markets while maintaining a high level of security. This allows traders to analyse market data around the clock to accurately analyse different market segments.
Brokers also offer their clients reports on trades executed. You can trade stocks, options, currencies, funds and bitcoins all through one broker. In your account, you'll see the history of your trades in numbers, which will allow you to analyse your strategy, changing it if necessary. It will also allow you to understand which of the assets you were buying made the most profit for you. Conveniently, you can track all of this in one account.
Stop loss and Take profit order setting
Every trader uses in his work different auxiliary means. Stop-loss and take-profit can be considered as basic tools that are used for proper strategy implementation, as well as to simplify the trading process itself.
Before setting a stop loss, the trader calculates the maximum possible loss on the deal and limits it with a special order to the broker.
Each trader determines the size of the order for limiting the loss independently, in accordance with your own risk management system. Most experts recommend a risk level of 2-3% of the trading capital.
Take Profit is offered in addition to the already opened position. Its main purpose is to set a target profit level. Forex and stock market traders do not set it just to make sure you do not miss a potential profit.
Such an order is used to quickly fix profits.
In a volatile market, the price can reach the desired level only for a short period of time. And if at that moment you are outside the exchange, you will not be able to close the position. As a result, the price may reverse and your profit will be reduced or eliminated.
Analytical feature of the platform
An extremely important part of professional success for traders, especially those who make frequent trades, is the ability to assess patterns in trading data. The platform, which supports electronic trading, provides traders with a variety of analysis options. The analysis itself is divided into technical and fundamental analysis.
The technical analysis is an opportunity to forecast price movement based solely on the analysis of historical movement of the price chart.
On the broker's website you will find many indicators, from the simplest and most popular to the most complex. In addition, you can customize the charts, set the desired timeframe and analyse the desired asset in the desired timeframe. These tools provide potential investors with an accurate picture of the future market before it happens. This information can help novice and experienced traders determine if they are making a smart investment.
Fundamental analysis is based on macroeconomic indicators and objective economic indicators. The goal of fundamental analysis, as applied to trading, comes down to determining whether the financial instrument in question (be it a company's stock or a currency pair) is undervalued or overvalued.
This can be especially useful for long-term traders seeking to protect their portfolios from unpredictable market conditions.
Many traders successfully use these two types of analysis together. And one of them successfully complements the other. Thus, fundamental analysis allows you to see the market in a sufficiently long term perspective, while technical analysis gives an idea about its momentary trends. Fundamental analysis tells the trader where the price will move in a sufficiently long period of time, while technical analysis allows you to look for entry points to the position, with greater accuracy.
Types of assets on an electronic trading platform
Multi-asset trading has been gaining momentum of late, as brokerage firms look for opportunities to expand and increase access to the same. In parallel, traders are increasingly adopting multi-asset strategies, especially in the face of global economic and geopolitical uncertainty.
A multi-asset broker is a combination of asset classes used as an investment that contains several asset classes, thereby creating an asset portfolio.
In this way, multi-asset investments increase the diversification of the overall portfolio by spreading investments across several asset classes.
Electronic platform for stock trading
Trading securities at a stock exchange is not without risk, but it is an attractive way of getting rich. Investments may be profitable for both experienced stock traders and beginners.
Shares are preferable to other stock exchange instruments due to the following advantages:
- High liquidity. The asset can be sold at any time.
- Security. Legitimate instrument protected by law.
- Unlimited profit. An example is the success of those who once bought shares of unknown companies like Microsoft, Google.
- Accessibility. To enter the market, you need to register with a broker, fund your account. And all this can be done online.
- Flexibility. There is a choice of companies in different price categories, segments, fields of activity, etc.
Electronic platform for forex trading
Currency pair is a ratio between prices of two currencies, which form an exchange rate and are used as an object for trading at Forex market. The standard symbol for a currency pair is as follows: Base currency / Quote currency.
The Forex market is the largest financial market in the world, which shows the current dynamics of world trade.
There are plenty of various currency pairs, ranging from the most popular to the most exotic. The most popular currency pairs with the highest volume of world trade are called the major currency pairs. These pairs are most often used for trading.
Electronic platform for options trading
An option is a contract that allows a trader to buy (call) or sell (put) a selected asset (a commodity or security) in the future at a fixed price (strike). Its peculiarity is that the holder of such a contract can use or not use his right to buy (sell).
For the chance to use a "put" deal, you have to pay a certain amount called option premium, which becomes the price of the contract. The time for which the trade is postponed is called the expiry time.
Trading binary options has become a separate kind of options trading.
This is not the way it works. You don't have to buy or sell an asset, but you have to guess which way its price will go: up or down, after a certain period of time. There are many types of options, and you can read more about them in our articles or on the platform.
Electronic platform for commodities trading
In the past, trading commodities required a considerable amount of time, money and experience and was mostly limited to professional traders. Today, there are more opportunities to participate in commodities markets. By using an electronic trading platform in Hong Kong, you can buy gold, silver and oil now and make money on price movements.
This trading is done via CFDs. It means that you do not buy the asset itself, and you do not have to think where to put a few barrels of oil. You will earn on the price difference.
In the broadest sense, the basic principles of supply and demand are what drives commodity markets. Changes in supply affect demand; low supply means higher prices.
Electronic platform for ETF trading
ETFs create a well diversified portfolio of stocks or bonds and sell a share of that portfolio. Buying a stake in a fund is like buying a microscopic fraction of all the assets accumulated in the fund. You will also need a brokerage account to buy ETF shares. Moreover, its price is based on the real value of its constituent assets. The main reason this area is attractive to investors is its simplicity and reliability.
Electronic platform for cryptocurrency trading
Interest around cryptocurrency trading has been growing, though the market itself is not yet stable. The mechanism for trading cryptocurrency on an exchange is no different from the usual. To make a profit, the currency is bought cheaper and sold at a higher price, while trying to minimize the risks involved. The top currencies are Bitcoin, which is generally easier to buy, sell and exchange.
Electronic platform for indices trading
Stock index (stock index) is a kind of indicator of average value of price for a certain set of instruments. For instance, the shares of different companies put together into one group, calculated by different rating agencies and institutions. The index is also considered to be an indicator of the economy of countries: its behaviour allows it to judge the mood of the market.
The index itself can neither be bought nor sold. With the help of CFD contracts, traders open positions for growth/decline of the instrument, which allows earning at any market picture and without big initial capital.
So, any asset can bring profit. It all depends on your trading style: some people like to trade 100 trades a day, while others prefer the peace of mind of 1-2 investments a month. Try to start trading on a demo account and figure out your own trading method.
How to start using an electronic trading platform in Hong Kong?
Many electronic trading platforms have appeared in recent years, which has made the work of traders much easier. Brokers are trying to improve their platforms and bring in different features to be the best, which of course is to the benefit of investors. So how do you get started with an electronic trading platform in Hong Kong?
The first step is to register, it's very simple and takes very little time. There is no cost to you. Simply choose the registration menu and follow the instructions. After registering you will be given the opportunity to open a choice of 2 accounts, Demo or Live Account.
Before you can really trade, it is a good idea to open a demo account for training purposes. It is important to know the rules of the market before you actually place trades.
The virtual account will allow you to test the software before you buy the actual product. This will give you an idea of the trading platform as well as the tactics with which you can trade with real money. Participating in demo accounts offered by websites will give you valuable experience. It will also help you better understand the electronic trading platform and prepare you to start trading.
When you open an account, you will be given a virtual amount, which is your equity. With this you can buy different assets, and find out what suits you best, what you are good at, and where you need to gain experience and learn.
You can then open a real money account on the platform. Simply fill in the information about yourself that the system asks for and make a deposit into the account. A broker will usually set a small minimum deposit that every trader can afford. Experienced players also advise against starting with huge sums. It is better to grow your investment portfolio systematically if you have little experience.
You should know trading terminology such as leverage, pending orders, economic calendar etc. You should also know the functionality of your trading platform. This includes how to adjust the screen, zoom in and out, find charts, and use filters and other features. Finally, the various screen menus and options on the electronic trading platform should be clearly understood. Start familiarizing yourself with the platform now, you will succeed!