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The Impacts of Technological Advancements on Trading

Technological Advancement

Modern technology and the internet have entirely reshaped all aspects of today’s world, making lives easier and more efficient. Various traditional sectors have been revamped with state-of-the-art advancements, while many new frontiers, like fintech and blockchain, have also materialized as a result of the technology rush.

One primary arena that has significantly benefited from tech developments is “financial trading.” Currently, the forex market alone caters to an average of over $6.5 trillion daily trading volume, mainly thanks to the technological leap of the 21st century.

The transformation of trading practices with technological advancements

It is wondrous how technology has completely remodelled the trading sphere by introducing a large number of innovative features and services.

Firstly, traders can now access live & accurate price quotes as digitized trading systems display price changes in a fraction of a second. Secondly, all trading transactions are swiftly processed without the risk of any error (as opposed, for example, to the 90’s trading design, which involved tedious and lengthy procedures). Advanced service providers and computerized back-end networks ensure that market participants quickly capitalize on the ever-changing price movements.

Another fruit of technological evolution is the availability of online trading apps that have drastically streamlined trading practices with lower fees, easy-to-use platforms, and fast & digitized order placement. Users can conveniently access trading applications on mobiles or computers, and experience market volatility at their fingertips. Many financial service providers, specifically SquaredFinancial, offer their clients high-speed trading platforms, analysis tools, and exceptional execution speeds from the comfort of their homes.

Most importantly, automated trading systems, including Expert Advisors (EAs), VPS, and trading robots, have further shaken up the trading landscape. These AI tools perform a much more precise market analysis and place fast-trade orders, which is impossible via manual means.

Some dangers of over-reliance on technology during trading

While technological innovations have greatly improved many aspects of the trading routine, they have also instigated some problems. The biggest issue is the tendency of traders to over-rely on technology, such as algorithmic trading, in hopes of significant gains. Although these automatic systems promise huge returns, most are over-optimized and fail to compete with human brains during live trading.

Further, as billions of traders lock horns in financial markets thanks to the easing accessibility, the corresponding challenges have skyrocketed. It has become notably tough for retail traders to achieve positive returns where large banks and tech giants are also involved.

Moreover, digitized trading can generate an over-simplified experience where traders might fail to understand that real money can be lost. Simply put, gamified trading might hit traders with unexpected and huge losses.

The modern digital age – a path towards better trading

Overall, technology has undoubtedly fostered the “trading arena,” helping all market players become better strategists and traders. Trading barriers have also slumped to the ground with many multi-asset brokers like SquaredFinancial, where all traders can realize their financial objectives amid a digitalized environment.

All in all, technological developments have enacted a remarkably convenient and proficient path for today’s traders. With just a few taps, they can electronically deposit funds, make transactions, draft automated investment portfolios, engage in leveraged trading, get hold of live prices, and benefit from several other trading perks, which were a pipe dream of past-century traders. This is all thanks to the present modern technology.

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