Stock trading systems are
designed for stock markets where shares
are bought and sold. The participants of this market present various
categories of people. They can be both individual stock traders and
large hedge fund traders. It is interesting that their location isn't
important. It can be a physical place and virtual one as well. Due to
modern achievements of technology, it can be simply imagined. If we
look at the first variant, we will find out that traders enter "verbal"
bids and offers at once. The second type is made thanks to stock
trading systems that allow to
trade 24 hours/7 days.
Have you ever taken part in any auction? Or have you ever seen it on
TV? It is a place where some things are sold, but the price
isn't
fixed. A thing has an initial cost, but a final one isn't known.
Everything depends on the value of the thing that is sold and the
number of buyers. When the bid price and ask price match, then the sale
is realized. The approximate system works at stock market and in stock
market trading systems.
Historical data of good stock trading systems should include different
kinds
of economic cycles (e.g. inflation, recession, growth etc).
When
the systems are
tested,
numerous factors and parameters should be taken into consideration to
avoid unpleasant
losses in future. It sounds encouraging, nevertheless one should not
forget about monitoring and
trading systems
troubleshooting.
Artificial intelligence doesn't surpass human knowledge, experience,
and skills. It is only a tool that simplifies some stages of trading
for receiving the desired result more quickly.
One of the most famous stock trading systems is CATS (Computer Assisted
Trading System). It was designed (see more
designing a trading
system)
more than 20 years ago. The main function is the open-outcry
institution. It has given a great opportunity for automation of the
processes that take place on the stock market (especially those ones
that are connected with price setting)
.
