Up until quite recently, when we thought about trading, we would imagine smoky trading floors full of traders, shouting, braying, and waving slips of paper in the air, while hanging onto a phone with the other hand. This image has become a distant memory thanks to technological advancements.
Technology has infiltrated the trading world, simplifying, streamlining, and revolutionizing the way the entire system works.
Mobile technology
In around a decade, mobile technology has come on leaps and bounds. The smartphone was a life-changing invention, but over the years it’s evolved to be more powerful than many desktop PCs. As a result, most of us prefer to carry out a range of daily tasks from our mobile phones. Banking, working, research, communication, and of course trading have become incredibly popular via mobile rather than PC.
As the world’s most traded market, forex trading has gone from strength to strength. In the last 12 months, the number of new account holders has increased significantly, much of this traffic coming via mobile. The convenience of online forex trading platforms combined with a desire to trade on the go has encouraged a new demographic of traders. Many sites now offer beginner tips for those considering currency trading, especially as it has become more accessible to new demographics.
Artificial intelligence
Did you know that most of us have interacted with AI and didn’t even realise it at the time? Artificial intelligence is no longer just for sci-fi films and it’s being used in every sector from healthcare to education and yes, you guessed it, trading. In the stock market, and when trading other commodities, AI is being used to help traders out. The trader sets certain parameters and AI then acts upon pre-defined instructions when a certain parameter is met.
This saves traders a lot of time, allows them to execute multiple trades over the same period of time, and it removes any bias. By automating trading as per certain specifications, traders are less likely to act on impulse or emotion, therefore sticking to their strategy.
Blockchain technology
Blockchain is no longer just the distributed ledger that powers bitcoin. Over the last few years, its become an innovation in its own right. After initial scepticism, blockchain technology is now being used by some of the world’s biggest companies including investment banks, logistics companies, universities, and even governments. It is also finding its place in trading. Firstly, cryptocurrency is being traded more and more each day. Crypto trading sites and brokers use blockchain technology to facilitate trades and to keep immutable records of every transaction.
But it’s also being used to add a layer of protection to regular trading activities. Once a transaction is logged on the blockchain, it cannot be altered, changed, deleted, or tampered with in any way. This is great news for brokers that want to keep thorough records and protect themselves. and their traders from disputes.
In terms of technology and trading, the future is looking pretty exciting. We are likely to see many more innovative applications of tech in the coming years. Many of these will make the process of trading more transparent, efficient, and exciting for millions of traders worldwide.
This article is published in partnership with IG
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