Equity Trading In The 21st Century



To invest funds in an organized market, investors can discover multiple instruments like bonds, derivatives, equities, exchange-traded funds, and government securities. In the late 20th century, prior to dematerialization, equities were traded in paper-based physical format with a “T+5 days” settlement system. Investors had to visit the brokers in order to buy and sell the shares floated in the market. Few facilities were offered by the stock exchanges and brokerage firms that hindered the smooth flow of capital to the market.

In the 21st century, stock making is growing rapidly. With a strong financial system, technology, and advancement, equity, as well as other trading practices, are improving day by day. Trading is simple with an online trading account that can be accessed from anywhere in the world. Investment and trading in high-value equities are allowed with small funds using a margin trading facility with depository participants and brokers. Automation advancement in trading with equity can be understood by the fact that now the trader can predict their share value for the time of squaring positions. An algorithm trading facility is another advanced feature of equity trading that involves a computerized algorithm to trade with equities as well as other securities.

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