What are Daytrading Programs?
Daytrading programs are software or on-line services that can assist you in daytrading. They might be signal providers, charting services, auto-traders or custom trading paltforms.
Daytraders speculate in securities – specifically buying and selling financial instruments within the same trading day. Daytrading is trading only within the same day. As such, all positions are closed before the market closes for the day.
Many daytraders may not be so strict or may have daytrading as one component of an overall trading strategy. Traders who participate in daytrading are called daytraders. Traders who trade in like that with the motive of profit are therefore speculators.
Some of the more commonly day-traded financial instruments are stocks, options, currencies, and a host of futures contracts such as equity index futures, interest rate futures, and commodity futures.
Day trading was once an activity that was exclusive to large financial firms and professional speculators. Many daytraders are bank or investment firm employees working as specialists in equity investment and fund management. However, with the advent of electronic trading and margin trading, day trading has become more common.
Daytrading programs are automated computer programs. For the most part provided by brokerage firms to assist trading customers do their daytrading activities in an efficient and timely manner. Trading programs enable traders to get profits that would be maybe difficult to achieve by manual traders. For example, a daytrader may find it impossible to manually track two technical indicators (like 50 and 200 day moving averages) on four different stocks of her choice. But an automated daytrading program can easily do it and place trades once the parameters are met.
The features and functions available may be different from one trading program to the next. And come in different versions. Aside from brokers, independent vendors also provide day trading software, which tends to have more advanced features.