Online Trading refers to web based trading activities without the direct intervention of a broker. The internet has actually bundled up global trading opportunities for the enthusiastic trader and delivered it right to his desk from where he can trade for stocks, forex and options.
The eTrade accommodates both the beginner online trader and the experienced trader who has advanced knowledge on trading stocks options and foreign exchange. Since this trading method does not involve a broker directly, it generates a higher percentage of profit.
Previously, to buy and sell stock options, the service of a broker was absolutely necessary as, only they enjoyed privileged access to trading information. This also involved paying out high brokerages to them which subsequently swallowed up a major portion of the profit of the investor. But online stock trading information is now widely available in the websites and the trader can now exercise full control on his investments and transactions through online trading options.
Stock Trading Online is one of the most well-known methods of trading options on stocks nowadays. In order to understand the stock trading online is crucial to understand the basics about what a stock option.
To simplify it the stock option trading is a contract between two partners where the person who purchases the option acquires the right to buy or sell a set quantity of shares of the principal stock at a predetermined priced price to or from the person selling the option for the time frame specified.