Trading is currently a very popular way to get money. How does it work and what are its main principles?
A trading system (platform) like PocketOption trading provides automation of the trading process for various participants: for those who sell and buy, and for third parties who provide different services and live on commission.
It should be noted that many of the principles of electronic commerce repeat how it happened before, when there were no computers. But even now, in the era of total computerization, there is a lot of manual work in trading, which is not directly related to making a decision to buy or sell.
Securities and their features
A security is an object of trade. There are many types of securities (stocks, bonds, currencies, etc.). From the point of view of a computer system, each security is just an identifier. For example, “GOOG US Equity” is Google shares on the New York Stock Exchange, “VOD LN Equity” is Vodafone shares on the London Stock Exchange, “CT2 Govt” is two-year government bonds of the US government, etc. There are thousands of such identifiers, and in general, most electronic trading systems try to maintain the uniqueness of these identifiers in order to avoid confusion when transacting between different platforms.
Each system can have an internal system for identifying securities for ease of accounting.
More detailed about the trade
A trade is the fact of buying/selling securities. A trade typically has several basic characteristics: date/time, security ID, amount per unit, and number of security units purchased/sold. This quantum of information is usually called a tick (or feed). It is the stream of such ticks, received in real time from various trading platforms, that is the main source of various reports, graphs, charts, tickers, etc., describing the “state of the stock market”, according to which traders decide what buy or sell, when and how much.
