Types of Trading Solutions and Their Applications


Offering a combination of tools and software to perform a variety of trading-related activities, trading solutions intend to make the process of trading or investing much easier.

Just like everything else, the advancement in computing technologies has made the process of trading and investing convenient and accessible. Investors can now perform all their trading-related activities online, right from their home through the use of the internet. Inevitably, this revolutionary system has enabled traders to ditch the hefty fees associated with hiring a broker and replaced them with a set of tools and software.

Normally, an online trader utilizes a host of tools regularly in order to analyse the financial markets and make profitable trading decisions. It includes online trading platforms to buy, sell and hold assets, charting software, risk analysis tools, pattern-recognition tools, currency converters, simulators, automated trading advice tools, etc. These comprehensive tools can come in one single package or separately and are popularly referred to as trading solutions.

So, let’s find out about the most important types of trading solutions and how they can facilitate a better trading experience from below.

Trade Placement Solutions

The most basic trading software are the ones that enable traders to place their trades on securities of their choosing. These tools usually display real-time quotations and execute buying and selling orders without any delays. The most advanced order placement software also tends to have features such as market orders, limit orders, automated take profits and stop-loss set up, etc.

Technical Analysis Tools

Another important part of trading solutions is the tools that enable investors to observe and analyse interactive charts depicting the price changes of an individual asset or indices. They usually come with the capabilities of depicting hourly, daily, weekly, monthly, and yearly trend lines and chart patterns. They are also often paired with some useful trend indicators including moving averages, relative strength index (RSI), momentum oscillators, etc.

Fundamental Analysis Tools

Another key indicator of risks vs reward in the financial markets is the fundamental analysis tools. These tools are designed to analyse different fundamental information of a particular business or asset group in order to get an in-depth understanding. In includes analysing the financial statements, previous performances, analyst ratings, latest news and information, etc. It may also include information regarding the insider’s activities regarding a particular asset or securities.

Automated Trading Solutions

Ever wondered about delegating your trading activities to somebody else? Thanks to the advancements in programmatic or robotic trading tools you can now execute all your orders without any manual activities from your part. Whether its stocks, options, ETFs, or indices, robot trading can perform all the tasks automatically under some pre-set guidelines.

While all of these solutions mentioned above are available individually, some online trading platforms offer them all in one place minimizing time, effort, and fees in the process. So, you should carefully consider the trading solutions available on a particular platform before selecting one to trade.