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What is a trading terminal?
What is a trading terminal?

Digital technology is gradually taking over all spheres of our lives. That is why trading in the financial market moved from stuffy offices to the Internet. Anyone can get access to securities and other traded assets through a trading platform. In fact, it acts as a broker allowing you to work with currencies, buy and sell them, as well as set up a stop-loss and take profit.

Upgraded trading terminals have built-in functions for technical analysis, which is very important for making the right decision about entering or exiting a trade.

Experts claim that the advent of digital trading supplemented with trading terminals has popularized one of the most respectable jobs, and now everyone can become a Forex trader. All you need is money, access to the Internet, and free time.

Basic classification

Depending on the way a trading terminal works, there are two types of software:

  1. Versions installed on the trader's personal computer. Such software is developed according to the broker's needs and allows the user to access the financial market. You can download the program on your broker's website and install it on your PC following the instructions.
  2. Versions running directly on the broker's server. In this case, you do not need to install the software on your PC as it runs on a public server. To access the financial market, simply use the URL.

The web version is very easy to use because it does not limit the users to a specific device, and they can enter the financial market from anywhere in the world. However, the option has its drawbacks. A trading terminal running on a broker's server cannot provide the speed required by intraday traders, let alone meet the needs of scalpers.

In terms of the device on which the trading terminal operates, the software can be divided into two different types:

  1. desktop version;
  2. mobile version.

Most desktop trading terminals have a strategy tester. With its help, you can check how successful any built-in algorithm is in the market.

Mobile applications do not always offer a large variety of available options, but there is an advantage in using them: traders can constantly keep their finger on the pulse, assessing the state of the market and detecting trends. In addition, mobile versions of terminals will always have the minimum required set of features:

  • working with price charts;
  • opening and closing positions;
  • canceling or modifying pending orders;
  • working with a stop-loss and take profit.

It is more common for professional traders to use desktop versions of trading terminals. However, they monitor the situation using mobile alternatives during the day.

What to look for when choosing the software

When choosing a trading terminal that will give you access to the financial market, it is important to pay attention to the usability of the user interface. This is especially important for novice traders who do not fully understand the specifics of entering and exiting a trade. It is advised to choose detailed and customizable interfaces with a wide range of features, including the option of connecting an additional desktop.

It is equally important that the software allows traders to manage risk management parameters. This will not only allow you to trade more efficiently in the financial market but will also help to deal with your emotions as those very often lead to rash actions.

The most important parameter of a trading terminal is its performance. It must remain stable at all costs, even if you make hundreds of trades a day or there is a strong market movement.

When important economic news is released, the number of orders on the servers increases hundreds of times. If the program is not optimized enough, it can freeze at the most important moment and traders will lose the opportunity to earn at best or their money at worst.

As we can see, there are many parameters that you should pay attention to when choosing a trading terminal. Taking brokers' word is reckless, while testing software using real money can very well lead to losses. Therefore, it is better to choose brokers that provide free trial access to their terminal to assess its capabilities.

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