Day trading software is computer software intended to facilitate day trading of stocks or other financial instruments.
Video Day trading software
Types of software
Day trading software falls into three main categories: Data, Charting, and Trade Execution.
Data
A day trader needs to know the prices of the stocks, futures, or currencies that s/he wants to trade. In the case of stocks and futures, those prices come from the exchange where they are traded. Forex is a little different as there is no central exchange.
Charting
The vast majority of day traders will chart prices in some kind of charting software. Many charting vendors also supply data feeds.
Charting packages all tend to offer the same basic technical analysis indicators. Advanced packages often include a complete programming language for creating more indicators, or testing different trading strategies.
Trade Execution
Once traders have their data and can see and analyze it on a chart, they will at some point want to place a trade. To do so, they need to use some kind of trade execution software or electronic trading platform. Many trade execution software allow advanced traders to develop their own trading strategies by using an API.
Most stock brokerage firms will provide proprietary software linked directly to their in-house systems, but many third party applications are available through Independent software vendors(ISV). The advantage of third party programs is that they allow the trader to trade through different brokers whilst retaining the same interface. They may also offer a number of advanced features such as automatic trade execution.
Maps Day trading software
See also
- Electronic trading platform
- Extended hours trading
- Bloomberg Terminal
- Reuters 3000 Xtra
- Technical analysis software
- TraderMade
References
Source of article : Wikipedia
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