Electronic Trading

Electronic trading also called as e-trading, is the process of trading securities, financial derivatives, and foreign exchange using an electronic platform, as opposed to the open outcry pits where trading used to take place historically.

Electronic trading takes place on systems with electronic execution model through APIs. Application Programming Interface is an interface that enables your platform to connect with the market. APIs have multiple features that facilitate information sharing, trade executions, and order and trade confirmations.

Electronic trading has lowered the transaction costs and tightened the spreads. It has increased the liquidity and transparency in trading.