Why on line trading is clever

Although the technology is cutting edge, the principles of on line dealing are very simple. The most up to date brokers use straight-through processing of transactions, where there is no human intervention in a trade. Going to the trading part of an on line dealer's site, you will enter the code and either the number of shares, or the value of shares that you would like to buy (sell). Your order will go to the market maker, who will respond to your order. At the same time, the process of changing the ownership of the shares, and transferring the money between you and the market maker is begun. All this happens electronically within seconds. You will then be sent a contract note by e-mail advising you of the transaction. Overall, dealing on the Internet is fast, efficient and cost effective.