ISSUES IN ONLINE TRADE PRACTICES

Abstract

The online trading practice has exploded its growth and popularity, at present there are more than 150 brokerage firms are offering online trade. There are many advantages of online trading which includes lower fees for investors, more control and flexibility of the investor to access the portals and the facilities to monitor the investment in real time. Apart from these advantages, there are many hidden dangers in online trading, it is said “investors who let their emotions rule can face tremendous losses”, while investing it is important for the investor to look into the high quality, well established companies .It is easier to invest in online trade, which may lead to the risk of making poor investment choice, placing some limit order in the amount may help the investor to decide what he should buy and how much to buy, but most importantly the investor should hold the stock for long period to earn high profit in short run might seem attractive, but it can’t be reliable over long term. Online trading makes a way for the investor to get addicted and involve in activities like gambling, where investors choose short term strategies which holds risky stock offering for large gains but also significant losses. This paper focuses on the issues relating to online trading and ways to overcome those issues.