First of all, says Jacob Bogatin, you need to get theoretical knowledge about the exchange trade and understand whether you need it? It is necessary to know how the exchange trade is organized in our country. In addition to stock exchanges, brokers and traders, regulators, self-regulating organizations, registrars, depositories, clearing organizations and clearing centers, clearing houses and depositories are among the players in the stock market not only in the US but also in any country.
Further, according to Jacob Bogatin, one should familiarize with such a phenomenon as a trading terminal. After the trader entered the purchase or sale application with the help of the terminal, before entering the exchange, it comes to the trading system of the broker. Such systems are equipped with authorization and limitation tools that allow you to route the application to the market, and also give the client information about its status and the current state of its portfolio. At the same time, says Jacob Bogatin, it is essential to know that most of the applications on modern exchanges are generated by robots, for which brokerage systems have an API for connection.
Trading robots can make hundreds and thousands of applications within seconds, so the most important thing for them is speed. That is why the work on the scheme “user (robot) – brokerage system – the core of the exchange” cannot satisfy all traders – because there is an extra link in the form of a brokerage system. That is why there was a technology that allows optimizing this chain as much as possible – direct access to the exchange, says Jacob Bogatin.
After gaining theoretical skills and learning more about technologies, many traders go straight to trading – and lose money. Moving gradually is necessary. It was for such a smooth “working out” in the specifics of the stock market and the habituation to the chosen means of trading that a test or virtual exchange trade was invented.
In addition to software, many traders pay attention to the “iron” component of work in the stock market. Therefore, before seriously plunging into the world of exchange battles, Jacob Bogatin believes that it is worth exploring and the range of gadgets for trading – how to know if any tool can help make more money.