One of the wonderful results of using computers in trading is automated trading. It is clear that human error in analyzing, planning, and decision-making has been an important reason for failure in trading. The computer programmers contributed to making software to eliminate the human element in these processes.
Computer algorithms are collections of instructions given to computers to solve a problem, and algorithm trading, which consists of computer algorithms and performs various tasks related to trading using difficult formulas and mathematical models, creates a virtual environment for automated trading. The essential tasks performed in automated trading are decision-making, creating orders, order submission, and order execution. Quantitative modeling and risk assessment are other tasks performed in automated trading. Generally, banks, hedge funds, trading firms, and pension funds use automated trading.
What the traders need to do automated trading is an electronic platform that uses software and a specific computer language. Realizing the importance of automated trading Interactive Brokers provided this type of platform, called Interbrokers API. This platform is user-friendly and allows them to have access to a large amount of real-time data. The traders can order and make strategies using this platform in a short time.
Some advantages of using the Interactive Brokers platform are as follows:
- You can use their cutting-edge mobile app for iOS and Android, which provides the latest data and helps you analyze data using graphs. It keeps you informed about new orders and connects you to all significant markets.
2. The inclusive dashboard makes it possible to perform a variety of tasks using this platform. It notifies you to be informed as soon as possible about every update in the markets. Its comparison tool allows you to know about your competitors’ strategies and analyzes information about them to make thoughtful decisions.
3. You can place a variety of orders, such as Bracket orders. There is no limitation on the number of people buying and selling stock or their prices per unit.
4. It offers fractional shares, which are less than a full share of equity and may be created by stock splits or dividend reinvestment plans. If you want to make your portfolio diverse, you can invest in various markets using fractional shares.
5. Considering difficulties in understanding automated trading Interactive Brokers introduced its tutorial portal, where you can take a large variety of courses to learn various computer languages or software. It helps beginners learn how to use the platform.
6. The affordable prices of the services offered by Interactive Brokers make them unique. The low prices attract small investors. In addition, it offers services at different prices depending on the level of investment. The prices for beginners are different from the prices for experienced clients.
Overall, Interactive Brokers is growing fast due to its best services, and it is predicted that the number of traders using Interactive Brokers will increase in the future.