Traders use specialized tools to analyze financial data and make decisions to buy or sell currencies, stocks, bonds, and derivatives through a network of brokers, market makers, exchanges, and other financial intermediaries.
Trading software is the opposite of the traditional method of trading, where orders are placed using an open outcry system. Brokerage firms typically offer online trading platforms to their clients.
Trading platform development services by DeepInspire allow you to conveniently manage your accounts and transactions from anywhere and work from your desktop, mobile device, or web. Some trading platforms allow traders to purchase third-party software that enhances the platform's performance. Key features of the trading software include real-time market quotes, charts, news feeds, order placement, as well as fundamental and technical analysis tools.
The Value of Trading Software
The main task of trading software is to place orders, initiate and close trades, and monitor the progress of trading through financial intermediaries.
Today, most traders prefer to trade on platforms as a traditional approach is becoming a thing of the past. Such online platforms include all the basic features you need to trade and monitor your accounts. This may include technical analysis indicators, charts, trading data, analysis tools, and other functions that are of value to the trader. Additionally, the availability and prevalence of APIs provide an excellent opportunity to extend the functionality of the software by linking two components together to perform a single function.
The main types of trading platforms are commercial and proprietary platforms:
Commercial platforms are designed for day traders and retail investors and include many analysis features such as maps and news feeds.
Proprietary platforms are designed to accommodate different trading styles and personal preferences of traders.
Common Functions of Trading Software
The main features included in the trading software are:
Programmatic Trading
Some platforms may provide programmatic trading functions. This allows users to trade automatically, without the need for action on the part of the trader. Users can also check how the automated trading system works when running certain commands.
Paper Trading
This is a kind of test trading. This feature enables risk-free virtual currency trading and is built into the most popular platforms. This way, you can evaluate your skills by trading without real funds, which is especially useful for beginners as it allows you to avoid losing money due to a lack of experience and skills. In this sandbox, traders can test different strategies and check which ones work without the risk of real losses.
Placing Orders
The task of this function is to place new orders, including market and limit. It allows you to check prices in real time and track trading statistics for the day, as well as the percentage of winnings for the day and profit/loss on closed transactions.
Technical Analysis
Each platform provides a set of different tools necessary for market analysis. Most often these are interactive charts, chart models, and technical indicators that allow you to analyze currencies/stocks and check current trends.
Traders can also customize certain elements on the charts, such as adding resistance and support lines, technical indicators, ratios, etc. These personal settings are then saved allowing further use.
How to Choose Trading Software
Every person thinks differently. This means that what works for one trader will not always work for another. That is why choosing an effective profit-generating strategy is one of the main stumbling blocks for any novice trader.
Therefore, the first step is to choose those strategies that you think best suit your specific type of thinking. Then, the second step is to select the software that suits your chosen strategy best.
Software is the most essential tool when it comes to trading. With the right software, traders can make significant profits in the market. In this case, the choice directly depends on your trading style. There are many factors to consider here, including features, cost, and ease of use.
Here are the main rules on how to choose the best trading software for your trading style:
Determine your strategy. The first step in choosing trading software is to determine your trading style. Here you need to decide how you are going to act, for example: day trading, swing trading, position trading, etc. Each style requires a different set of features and tools to achieve its goals. So, if you are a day trader, you need trading software that provides real-time data and fast execution. Position traders, on the other hand, need trading software that can execute multiple trades simultaneously.
Experiment with the software. Once you have decided on your trading style, the next step is to experiment with different trading programs to find the one that works best for you.
Evaluate the software's capabilities. The key aspect to pay attention to is the capabilities of the software. Look for trading software that offers real-time data, technical analysis, and risk management tools. Some software may also offer automated trading, which is useful for clients who want to trade 24/7 days. Evaluate the features that matter most to you and, based on that, choose the software that meets your requirements.
Consider the budget. The price of trading software varies widely. Also, some programs may be free. When making a decision, it is important to consider the cost of the software, your budget, and the profitability of your trading strategy. Finally, remember that the most expensive trading software is not always the best one for you. First of all, evaluate the tool by how you can handle it and, based on this, make a purchase decision.
