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Modern Stock Trading – The Changing Face of Global Exchanges

Last Updated Date - Mar 21, 2023

The pandemic has led to a lot of curiosity about the stock market among retail investors. And this curiosity needs to be fed with some of the latest information on the topic of modern stock trading.

If you are a novice to the stock market and are looking for an article to give the past, present, and future trends of the company, then this is the right spot.

As the world continues to battle against the pandemic, the trading market faced many ups and downs, and this volatility triggered some unreversible changes that are becoming the stepping stone for a new face of global exchanges.

To read more about these new and modern stock trading traditions, continue reading ahead.

From Trading Floors to Digital Platforms

The lockdowns and, in general, digitalization have slowly encouraged most of the stock exchanges to transform trading platforms into electronic trading platforms.

Many significant international exchanges, including London Metal Exchanges, NASDAQ, CME, and CBOE, have already transformed their trading floors into more automated versions in the last few years.

Modern stock trading will include the adoption of innovative technologies to almost automate all trading procedures. The best parts of these digital and automated platforms are:

  • Provides seamless access to cross-border market
  • Reduces transactional latency
  • Easy execution of high-volume trades
  • 100% uptime
  • Minimized regulatorily and risk reporting time

Different stock trading exchanges adopted different technologies to support this digitization. These will be discussed ahead in the article.

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    Modern Stock Trading brings New Investment Trends

    Modern Stock TradingThe crisis of the past year not only affected daily life but also changed the trading norms. The investor practices upgraded to more technological and digital infrastructure.

    And this trend is not just visible in terms of infrastructure but also in terms of the companies in which the market is showing interest for investment purposes.

    This shift in perspective became evident when the majority of market sentiment shifted toward investing in ESG firms and those with a dependable workflow that can remain robust even when a global crisis emerges.

    Thus, companies and industries which are quick to adopt digital transformation are gaining more interest from investors than the slow adopters. This type of shift in modern stock trading is one of the permanent changes in investment patterns.

    However, as a novice trader, even to become a part of this crowd, you will first need to familiarize yourself with the different trading strategies, in general, to understand where your interests and benefits lie.

    The best two trading approaches are Growth Investing and Value Investing

    Growth Investing

    In Growth Investing, the investors actively seek out the companies that are on their path to exceptional growth and will soon realize maximum appreciation of their share prices.

    If you are of the mindset that the growth of the companies is much more important than the dividends, then going for young companies will be the best option.

    Any investor opting for this investment strategy can try investing in tech-based stocks as it is an industry that has high growth prospects.

    Value Investing

    Value Investing is meant for investors who have a clear financial goal to earn a steady secondary source of income.

    In this approach, you as an investor may feel more at ease looking for well-established companies that have consistent profitability and pay out a regular dividend to shareholders. Such investors are risk-averse and often invest in stocks that are undervalued.

    Now that the modern trends of the market and the investment strategies are, let’s try to understand what exactly are the drivers which are leading to such changes in the market.

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    Drivers of the Digital Trading Market

    To put a number to the total global exchanges that exist, there are 130 currently. All of these stock exchanges trade in equities, ETFs, options, futures, derivatives, and swaps.

    Most of these exchanges are leaning trading towards modern stock trading by adopting more technological changes. However, apart from the global pandemic, there are a few more drivers that are leading to this change:

    Increased competition

    Many exchanges are facing a high degree of competition from new and advanced exchanges. Thus, squeezing them into a corner and driving them to adopt digital transformation.

    Revenue pressure

    The new regulatory mandates are tightening the margins of the exchanges; therefore, to reduce costs, the institutions are adopting technological advancements.

    Following the trends

    Artificial intelligence/machine learning, bitcoin, big data analytics, the cloud, and other cutting-edge technologies are all becoming the mainstream digital ecosystem adopted all around the globe.

    Segments of Global Exchange

    As previously mentioned, one of the major transformations in the global securities exchanges to modern stock trading is the digitalization of these infrastructures.

    However, these cannot be done overnight. Every transformation needs to follow through a particular journey and these focus areas are listed below:

    Digital products

    The exchanges will have to work on launching digital services and products, such as supporting blockchain technology and providing chatbots for easy communication.

    Global Partnerships

    If the stock exchanges partner up with many other global trading houses, it will give the investors greater exposure to the market.

    Reduced manual operations

    With digitization comes automation. Thus, automating the onboarding, listing, and payment methods will also be an important aspect of reshaping the operational model of the stock exchanges.

    Reduce Latency

    Work on digitizing the operations to reduce the turnaround time for regulatory reporting and high-volume trading.

    On-demand data

    It is necessary to develop efficient data-sharing models so that clients can have access to on-demand market data and can make more informed decisions.

    Market surveillance

    The share market is always prone to fraud and market manipulation. So, using digital transformation technology, the exchanges need to develop surveillance systems that can rule out fraud with less manual intervention.


    The transition to a digital capital market will not be simple, but if security exchanges do not advance, they run the prospect of being replaced.

    Future flourishing global exchanges probably will be distinguished by their comprehension of and adoption of cutting-edge solutions and enabling technologies.

    They are intended to draw in a wider ecosystem of players, give them access to more data for decision-making, and enable them to seamlessly access markets.

    Overall, investors stand to gain greatly from the transition from the traditional stock market to the modern stock trading approach.

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