Electronic trading refers to the use of computer systems and networks to facilitate the buying and selling of financial securities. This method has revolutionized the trading landscape, allowing for faster transactions and greater accessibility for individual investors. With platforms like E*TRADE and TD Ameritrade, traders can execute orders from anywhere with an internet connection.
The rise of electronic trading has also led to the development of algorithmic trading, where algorithms are used to make trading decisions based on predefined criteria. This has increased market efficiency and liquidity, but it also raises concerns about market volatility and the impact of high-frequency trading on traditional market dynamics.