Electronic Trading Platform in Nigeria
What is an electronic trading platform?
The last few years have seen an influx of new investors into the stock market - this is partly due to growing financial literacy and partly due to serious volatility in world markets, which offers an opportunity to make money.
The modern world dictates its own rules, and trading on the stock exchange is now available to anyone with an internet connection. Current legislation does not allow citizens to connect to exchanges directly. Individuals become exchange and currency players through intermediaries - electronic brokerage companies. This means that traders can be connected to an electronic trading platform at any time, and execute a transaction.
Electronic trading room offers convenience, ease of use and lower costs, enhanced functionality, lower training costs and improved risk management - all from one place.
Advantages of trading via the platform
Online brokerage is made possible by the many features and services provided by modern trading platforms. Investors can use real-time quotes as well as information about specific market indices or securities. Traders can use indicators, charts and other tools offered by the platform.
The platform is easy to navigate and allows traders to see what's happening in their accounts. Conveniently, you can buy multiple assets and have all the results of your trades displayed in one account. Keep track of your results and change your strategy when you need to.
You have peace of mind about security. All transactions through the electronic trading platform, are protected by the strongest encryption methods.
The electronic trading platform is able to provide accurate market information. Stock prices are constantly updated, so you can make informed decisions and take correct actions to maximize the potential of your portfolio. Trading is only possible if you have reliable data. Online brokers provide in-market updates along with weekly, daily and daily data updates.
Thanks to recent advances in wireless technology, investors can trade from their mobile devices. Simply download the app and use your account from anywhere in the world. Sometimes it's important not to miss the moment when the quotes of the desired asset have dropped, and now you have to wait until your PC is at hand. Just go to your app on your smartphone!
The speed at which orders can be placed or removed is an important advantage of trading online. Investors can place orders and request bets at any time during the trading session. Because trades are executed electronically, orders can be placed within minutes. This enables traders to react to changes in the market, which is crucial for trading.
Analytics section on the platform
In addition to the trading room and the large selection of assets, traders are offered an in-depth analytical section on the platform. It includes different types of analysis.
First is the fundamental analysis. It takes into consideration external factors, which can significantly influence the market. For example, various economic and political news. In case of the fundamental analysis, a trader takes into consideration all available events, which can considerably influence the market. For this purpose, you can use the news section, as well as the economic calendar of the platform.
The second, but no less important, type of analysis is technical. The analysis allows to study the price movement in detail. It uses charts and various indicators, which provide all the necessary information. This type of analysis allows you to follow the price movement, thanks to this information, you will be able to more accurately make your own forecasts. Charts allow you to see certain patterns and trends, in order to understand what is happening in the market. Technical analysis gives you all the information about how the market behaved before, this is how you can make predictions about future movements.
Even today, there is a debate among traders as well as top analysts as to which analysis is the most effective.
There is an opinion that it is necessary to use all available types of analysis, this is the approach that allows you to count on success.
Types of assets on an electronic trading platform?
Once you get onto the electronic trading platform, you immediately see the variety of assets you can trade. Inexperienced players don't always know where to start. In fact, the ideal option is to diversify your investment portfolio. You should split your capital into several parts and invest each part in different assets.
Electronic platform for stock trading
A stock is a security, which gives its owner the right to receive a profit. Income from stocks is received in two ways - in the form of dividends and through price appreciation. Do not take the selection of stocks lightly if you are planning to invest for the long term. This is where fundamental analysis comes in handy, as it will show you the downsides of the company, research the earnings release of the firm, and check out the latest news.
You will be able to find the information you need about the firm's operations from the media or on the firm's official website. This information will make trading as easy as possible.
Electronic platform for forex trading
As the name implies, a currency pair is made up of two currencies, which express the price ratio of these currencies to one another on the market, or in other words, the exchange rate. When buying one currency in the Forex market, a trader simultaneously sells the other. The first currency in the pair is the base currency, while the second is a quoted currency. For example, in the EUR / USD currency pair, the euro is the base currency and the US dollar is the quote.
Trading currency pairs is traditional for Forex. The variety of currency pairs allows you to choose the best time to trade, and use the same indicators for different currency pairs.
Electronic platform for options trading
An option is one of the instruments of the futures market, which is a type of contract between the buyer and the seller. The subject of the contract is an underlying asset: commodities, indexes, stocks, bonds, and futures contracts. An option gives the buyer or seller the right to sell or buy the underlying asset at a specified price on a specified date.
Option contracts are divided into call (call) and put (put) contracts. Call contracts give the right to buy the underlying asset at a set price; put contracts give the right to sell.
Binary options are a separate kind of options. When dealing with them, you have to determine the direction of price movement. If the forecast is correct, the speculator makes a profit. If the forecast is wrong, the trader loses the investment. The deals are made on assets. It is possible to open deals at random, but it is more effective to analyse and forecast the market.
Electronic platform for commodities trading
This type of asset attracts traders because of its strong dependence on fundamental factors. This type of financial assets includes a variety of raw materials and natural resources. This is not a complete list of raw materials, which forex brokers can offer for trading. These are wheat, corn, coffee, sugar, oil, gold, silver and copper.
The distinctive feature of this kind of assets, is the complete independence from the brand of production and producer, this is due to the practical absence of distinction of different manufacturers. The cost of goods is usually determined by the global supply and demand. By learning the fundamental analysis, a trader will be able to profitably trade commodities.
Electronic platform for ETF trading
ETFs are all about high returns and moderate risk. If you don't want or don't have time to familiarize yourself with the business of any particular company, you can invest in a fund or index. An ETF includes several companies from the same industry. So when you buy a slice of a fund, it's like you're buying multiple companies at once. Unlike a fund, you can't buy a piece of an index. Because the index only tracks the behaviour of the securities. But you can buy an ETF that includes companies from the index.
Electronic platform for cryptocurrency trading
Cryptocurrency trading is a fairly new trend in online trading that gives you the opportunity to earn income by trading digital currencies. You earn income by buying cheaper and selling higher.
Cryptocurrency is a digital (virtual) currency, the unit of which is a coin that is issued online and is not linked to a conventional currency or any state currency system; in simple terms, it is electronic money.
Here are the main assets you may encounter on the broker's platforms. It's hard to decide where to start, but you can always try out any asset in a demo account. From there, you can start trading in a safe and interesting way.
How to start use electronic trading platform in Nigeria?
Many people today are wondering how to choose an electronic trading platform in Nigeria, because there are many brokers offering their services. First, make sure that the broker is licensed. Secondly, pay attention to the technical support, usually large brokers are able to assist their clients. A professional trading platform will offer you additional features besides the trading room, such as asset analysis, video training, mobile app, live chats with investors and traders. Also, make sure that the company has been operating for a long time.
You can use the leverage offered by the broker, if needed. With leverage, a trader uses the funds of the broker to control more capital. Leverage is used in many trading markets, and the amount of equity available to the trader will vary with the broker.
Once you are ready to start trading, you will need to register on the platform. To do so, fill in the form below and wait for the email to arrive before completing the registration. This is free and does not bind you in any way. You can then open your choice of Demo or Live account.
Once you open such an account, the virtual amount will automatically appear on it. You can use this money to familiarize yourself with the platform, to study the trading terminal and to gain experience and knowledge. Here you can decide which product you want. This will give you first-hand knowledge of how it works, and then you can decide whether it's worth investing your money. Once you are comfortable enough, then you can open a real account and start trading.
Opening an account on the electronic trading platform in Nigeria takes just a few minutes. You will have to enter some details about yourself into the system and also make a deposit which the platform offers. It is advisable not to start your stock trading with large amounts. It is better to make a small deposit, and then you can expand your account as you gain experience and knowledge.
Finding bargains in the stock market can be difficult. You should make sure you are aware of the rules governing the market so that you know when to buy and sell your assets, keep learning and practising all the time, good luck in trading!