For most investors, electronic trading is quite simple. A person must first create a
Once a person has established an electronic trading broker account, he or she can sign in with a user name and password to manage and order buying and selling. If a person wants to buy
One of the major issues with electronic trading is the possibility of server failure. Investors could lose millions of dollars if an e-trading website or exchange website fails for even one day. To compensate for this risk, many brokers and exchange webmasters run multiple redundant servers in secure areas. In addition to having generators in case of power outages, servers may be placed many miles apart in case of natural disasters that could destroy nearby backups.
To get a feel for e-trading, consider setting up a simulation account. Many brokerage websites allow potential clients to set up a fake account that will let them practice trading and even analyze trading savvy based on trades versus market information. Trying out a simulation account can not only introduce a novice trader to the services of a brokerage, but can also help improve trading abilities.