Let us move on to the Direct Market Access – The other type of platform that you can trade on.
Electronic Trading Facility – It is a facility for traders/investors to interact directly with each other with the order book of an exchange.
Own – You do own the underlying instrument by using leverage. It is usually 1:10 or more some brokers. Leverage can usually be compared to a property purchase – You put a certain deposit down to own the property at full price. We will talk more on leverage in the other modules.
Low Transaction Cost – Since orders are being done electronically, this is one of the reasons why transactions are kept low.
Identity protected – The identity of the trader and investor are protected as they are dealing with themselves directly. Therefore, there is minimal information leakage.
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5.7.2 Direct Market Access
Let us move on to the Direct Market Access – The other type of platform that you can trade on.