The way people carry out trade online is highly interesting and also diverse. There are different parameters based on which the various styles of online trading can be segmented.
Some of the parameters are:
- Products being traded
- Interval between buying and selling products
- Strategies used for online trading
Let Us See In Brief About These Different Styles Of Trading:
- Products Being Traded –
Various products can be traded online, and based on the objects being traded, there can be online trading of stock trading, commodity trading, foreign currency trading, options trading, futures trading and others. While options trading basically involves buying and selling of certain rights under specific market regulations, online commodity or futures trading involve buying and selling of contracts for things like bonds or crude oil and natural gas among others.
- Interval Between Buying And Selling –
Online traders can be widely classified into long term and short term traders, based on the interval between buying a product and selling it. Those with an interval of less than a year are typically said to be short-term traders, while the others would be long-term, online traders. The short-term traders are guided by the merits of the products they trade, and they form the majority of active traders online. On the other hand, long-term online traders are mostly company specialists who invest in upcoming fields in the industry.
- Trading Strategies –
As Per The Approaches Of Online Trading, It Can Be Classified Into Styles Such As
- Brother-in-Law style – here traders can look for advice from brokers and market specialists
- Technical trading – here online traders employ advanced technologies for trading
- Economist trading – in this style the traders are guided by economic predictions of the market
- Scuttlebutt trading – based on information fetched from other traders and brokers
- Value trading – here online traders rely on the values of individual stocks
- Conscious trading – which is a combination of any of the other styles mentioned here