Stock Trading and Technology - AxisDirect
AxisDirect-O-Nomics
Aug 17, 2017 | Source: DNA India

New Age Trading with Robots
In the stock market, time is money. While investors have warmed up to stock trading, the actual time required to manually keep a track of interesting opportunities, enter details and execute trades often eats into the profits. This is where automation and robots are transforming the way things gets done.
Heralding a new age in share trading, robots, in the form of uniquely-crafted software, have stepped up the game by silently working behind some of the most successful trades. Investors are trading with style at the comfort of their smart phones, and often at the speed afforded by institutions. This is making a huge difference to traders who have the undivided attention of robots scanning over 25,000 contracts, 5,000 securities per second to identify incredible live trades.
Mobile apps 2.0 is on the scene: Traders want to react to market movements faster and in real time pushing boundaries of tradition market methods , making market movements in less than a second and importantly, with just a swipe. Lengthy research reports are becoming passe as traders want winning trade ideas and strategies on their fingertips for quick execution in a secure and protected manner. Enter, robot-analytics.
Mobile-based options trading applications, powered by robots, provide multiple real-time market data scanners to identify market trends and help choose right options strategies. This is done using robo-analytics and advanced technical chartings, a product of advanced investment technology and consumer insights. Options trading in the Indian market has witnessed rapid growth in the last few years. By one estimate, options trading accounts for over three -fourth of daily volume on the main exchange.
As the industry adjusts to a technology-oriented mindset, and shifts away from a focus on just commission, the winners will be judged by their tech-power. The use of technology in today’s business has become mandatory in order to match the growing needs of the industry. Both the broking industry and traders have embraced Internet and mobility like never before. Over 60% of the overall derivative volumes is online. The share of trades through mobile is projected to grow threefold, and make for more than 90% of volume share.
Robots can do what humans can't: A typical investor can only remember so much information, due to the human brain capacity, which at its very best will still not perform in the same capacity when compared to robot. In the Stock Market, terabytes of data in form of information is changing every minute. To arrive at a structure, old-school traders use tedious excel sheets and manually go through trade possibilities. This not only takes them away from actually trading but also is quite monotonous given that there are hundreds of rows and columns rolling up and down on the screen.
For a robot, all this is an easy job. A robot can capture and process pre-defined market watch for key indices and supplement the info with advanced technical charting. Imagine the power of all this work and that too available at your fingertips. You are always just a small tap away from lucrative trades.
With practically everybody coming online, winners will need new strategies and approaches to stay on top. Robot-analytics offers real time scanners that give traders list of stocks under different criteria like rising and falling volume, price trends, strong and weak options, high-low breakers, abnormal volume shocker, bearish strategies, IV scanners and neutral strategies. It's just like having your own professional expertise, and that too at the comfort of your very own mobile phone screen.
Robot-based apps make payments and funding a breeze too. With the integration of the increasingly popular Unified Payment Interface (UPI) with trading platforms and mobile apps, users can move away from the complexities such as multi-layer authentication, restrictions on transaction amount and limitation on timelines. This makes life much easier for trading across different markets like equities, commodities and currency. Advanced authentication processes secure and provide a seamless user digital payment experience.
Disruptive technologies are a game changer for retail investors, who have usually lagged rich and financially strong investors in both speed and executions. All that is evolving with growing interest in trading in the options market. Powerful robo-analytics, and simultaneously ease of trading on the mobile have brought equalised the gap between Davids and Goliath.
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