electronic trading
finance
Also known as: e-trading
Quick Summary
Electronic trading, or e-trading, refers to the use of computerized systems to buy and sell securities. This method has revolutionized finance by enabling faster and more transparent transactions compared to traditional methods.1
Key aspects of electronic trading include:
- Automation: Electronic trading platforms, such as those used by NASDAQ, match buyers and sellers directly through specialized software, often without the need for intermediaries like specialists or market makers.12
- Accessibility: The internet and electronic communications networks (ECNs) have made trading more accessible to a wider range of investors, including retail investors.12
- Efficiency: These systems allow for real-time quotes and rapid execution of trades, leading to increased liquidity and potentially lower trading costs.12
- Cryptocurrency Exchanges: Similar digital marketplaces exist for cryptocurrencies, allowing users to buy and sell digital assets. These can be centralized, controlled by a single entity, or decentralized, operating via technology protocols.3
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