How Stock Trading Systems Work
Before electronic trade matching, stock exchanges operated on an open out-cry system. This meant that brokers took customer orders by phone, wrote them down in a notebook, and made strange finger movements. They would also cry out the name of a stock to indicate a sale, and look for people crying out the name of a stock to indicate they were buying it. Nowadays, stock trading systems are much more sophisticated and automated, and many traders use them to maximize profits and minimize risks. In a stock trading system , the system has a data interface for receiving investment data, and includes an investment item portfolio. These investment items are identified by unique information that is stored in the data interface. When the investment data is received, the individual trading computer analyzes it and outputs a trade request signal when it determines that the item should be traded. This process is repeated until the stock price reaches the predetermined stop loss. And if the price h...