With the evolution of online trading systems there are various platforms and methodologies available in the market for trading financial assets such as currencies, stock markets, indices, commodities, bit coins, and so on. Any trading system adopts a set of rules to determine the entry and exit points for trading in real-time, and based on the technical analysis of these rules the trading system is optimized to mitigate risks while maximizing profits for the traders. The evolution of the trading systems enables the traders to overlook their inefficiencies to make decisions and provides an automated decision making system to maximize the profits.
While the online trading systems have evolved to automate the decision making process, the traders are required to understand the complex trading system thoroughly in order to make realistic decision. Various parameters are used to develop an effective trading system, such as an Ask price of an underlying asset, the bid price of an underlying asset, the risk mitigation related parameters, the margin investment for the asset based on the market value, and so on. By understanding each of these parameters and applying the set of rules as defined by the trading system, the traders can maximize profits with an increased efficiency.
Before considering any of the online trading systems for trading, the traders are required to understand the basic concepts and the complete working of the online trading systems to trade efficiently and profitably. This document helps the new trader to understand the basic concepts or the fundamentals that defines the latest online trading system.