Commodity trading has been around almost since the dawn of capitalism, and as such it has undergone a series of significant evolutions over the years. As you can imagine, trading the likes of stocks and shares in the ‘old days’ involved very little of what we would call technology today, and instead relied on direct communication between traders/brokers/companies.
Now, however, the world of trading looks entirely alien even to the one which existed just two or three decades ago. This is mainly due to the emergence of new technologies. Here are some of the ways technology is used in modern trading.
The advent and rise of the internet has undoubtedly been one the greatest facilitators of new trading methods, with many high profile online trading brokers, such as OANDA, having appeared in the last decade alone.
Online brokers now serve their clients through websites, offering them the means to make trades on a daily basis (or however often they like) for a brokerage fee. Their rates differ, but they have massively opened up trading to hosts of new people/investors looking to make a profit, and are now undoubtedly the most popular means of trading commodities.
Every online broker worth its salt offers a trading platform with which those using its services can access the global markets and make their investments. One of the most popular trading platforms the world over is MetaTrader 4, although there are now many others available.
Many brokers now also offer the means to access global markets through mobile, so that traders can access the markets whenever and wherever they like. This has proved to be a technological innovation/revolution of its own, and the technology behind trading platforms is also constantly improving.
Trading platforms are far more than just doors allowing access to the markets, however. They also contain a great deal of useful trading software which has become a staple in the modern trader’s arsenal, and has helped many traders on their way to success.
This includes the likes of charting software to help with technical analysis, and many have now incorporated automation features in order to save traders time and energy. They also have incredibly advanced trading scanners which search markets for the best trades based on the trader’s search criteria. Most trading brokers also have hi tech economic calendars which are updated regularly to keep traders up to date with the latest market news and events.
It is clear that trading has come an incredibly long way in recent years, but it may still have a lot further to go. This technology is constantly improving, which means that the future of trading could see far greater access to the markets and greater capabilities for all traders in terms of analysing the markets and making trades. That being said, this technology has absolutely set the foundations for modern day commodity trading, and will undoubtedly continue to be used for many years to come.