Off-market trade ? an emerging concept

[amlevin 0]

When entering into stock trade online there are many benefits and unique advantages. The advent of online platform for stock trade has heralded a revolution of sorts. Traders used to the age-old traditional form of stock trade have taken to the new trading model with ease. With each passing year, more investors are flocking to the stock market. Along with that, the worth of all the stock markets around the world has already exceeded several trillions.

In earlier times, when the concept of virtual trade was introduced, trade in stocks was possible from any part of the world, but only during the time in which active trade was taking place. Orders can be placed for selling or buying shares only during live trading hours in the particular stock exchange and that too on a working day. When traders and investors were on the move, they could still place orders but they had to be alert and wait for the trade to commence in the stock exchange in which the stocks owned by them were listed.

Customer feedback from the investing public indicated that there is a wide possibility for offline trade because working people found offline trade more convenient. However, when offline trade was introduced, it took some time to become popular. In offline trade a trader or investor will not be able to be part of the wild fluctuations in the market. He will have to place orders at the quoted price for shares when the market ended trade on the particular working day. Even when the stock broker has gone to sleep, you can place orders for buying/selling shares and even make the payment through credit card.

Thus, the trades are not cleared and settled through the clearing corporation/clearing house of the stock exchange. Here, the buyer and seller can negotiate the price between them. The seller then gives his depository participant a delivery instruction slip, authorizing him to debit his account with the securities that are sold. The buyer gives his depository participant a corresponding receipt instruction slip (or a standing instruction), authorizing him to credit his account with the purchased securities.