Trading online service is a service provided by the brokerage firm to its customers, so enabling them to trade securities through the introduction of purchase orders and sales to the electronic trading system for themselves through the use of the Internet.
And it follows the investor who wants to trade securities through the Internet to be aware that this mechanism significantly and substantially different from the traditional way of authorized financial intermediary to enter purchase orders and sales on behalf of the client, it is through the trading service online investor can stock prices follows a neighborhood as well as other trading information, and any information provided by the mediator him through the service, to shall thereafter enter buy and sell its own without having orders for communication with the mediator and mandate this, so the investor is fully aware that he is the owner of a purchasing decision or sale is responsible for the implementation of this decision by entering the appropriate command to the electronic trading system by the program provided by the broker for its clients.
As the investor must before using it to serve the online trading to be aware of some of the technical and organizational matters relating to this service, in addition to the full realization that the use of the Internet involves a number of risks that could bring him the loss of undesirable, and these risks are linked to the Internet itself, user or program, or the electronic trading system, as well as the misuse of the service by the investor. So the investor acknowledges that he understands and accepts the risks that may be encountered when trading via the Internet, and that the mediator will not be responsible for cases of contact failure or crash or delay when trading via the Internet, as it will not be held liable for the resulting errors in account balances as a result of this failure or holidays.
Brokerage company that provides trading online service for its customers after obtaining the necessary approvals from the Amman Stock Exchange and the Securities and after achieving all the requirements set forth in securities trading online instructions and any other requirements specified by the Stock Exchange Commission, as the brokerage company is committed to the signing of the trading agreement with online customers wishing to take advantage of this service, which includes all organizational aspects between the two parties, and to inform the brokerage firm client on all documents relating to the Service.
The advantages of trading online: –
1. enable the investor to follow the course of trading in real time regardless of geographical location.
2. enable the investor to enter purchase orders and sales immediately in the light of the follow-up course of trading, and the exploitation of the moment offered investment opportunities.
3. enable the investor to follow-up and management of orders entered and monitor their investment portfolio in real time.
4. attract attention and attract new investors, whether they are local or foreign.
5. Increase securities dealers base.
6. increase the depth and liquidity of the market and high trading volumes.
The trading mechanism online
The risk of online trading
Tips for the investor who wishes to use the online trading service
Brokerage firms that offer online trading service
Activity trading service via the Internet
The instructions of online trading
The trading mechanism online
After the investor get access to their account information via the Internet through a brokerage firm that deals with it, be able to follow the course of trading and the introduction of buying and selling its own orders.
The software provided by the brokerage firm for this purpose, which checks the availability of sufficient balance of cash or securities to the investor’s account before accepting it.
In case of purchase: The book value of the cash equivalent of the value of the purchase order plus the commission and allowances payable to the investor, and immediately after the introduction of the purchase order, depending on the quantity entered and the price the entrance, and also the software to amend the reserved cash value in case the investor to amend the purchase entrance or something canceled, and in the case of implementation in whole or in part is the software will immediately deduct the cost of the securities purchased and adjusted cash balance depending on the rate of implementation.
In the case of sales: the program to order the amount of securities offered Investor available for trade balance, and in the case of execution of the sale is partially or completely is quantity discount executed investor balance and increase the cash balance equivalent to securities sold, less the value of which the commission and allowances payable to the client .
The risk of online trading
1. password for the loss of investor account.
The loss or loss of information access for the investor calculates as the user name and password, or neglect of the investor of non-preservation, or disclosure of non may entail numerous risks lie in enabling third-party access to the investor’s account and misuse of this account.
2. Action program trading mechanism via the Internet.
The failure to see a good investor jobs online trading platform before you start using it may lead to committing errors may check loss undesirable, so the investor must be seen well on the guide to use the software before using it to get to know all of its functions well, and ask the broker for any matters not clear to him through the user guide.
3. crashes Internet.
Because the mediator does not have any control over the Internet is used to provide trading service for investors, the breakdowns experienced by the network may lead to a partial outage or full service, which means the loss of contact with the orders entered into the electronic trading system, and an investor in such case immediately contact with the mediator and informed of the problem suffered by the mediator to turn control of the orders entered and return to the traditional way of trading until the return of the service, in accordance with the orders of the client.
4. Internet connectivity speed.
It is also not the mediator any control over the Internet, it also does not have any control over the investee connection speed, which may affect the efficiency of receiving information or routed over the Internet, which may lead to a delay in the receipt of trading information and letters of notification received from the trading system Concerning orders entered, as may have on this matter was delayed sending purchase orders and sales to the electronic trading system.
5. heightened trading activity of a sudden movement.
The increase in trading activity, the movement of a sudden or even increase the severity of overcrowding on the service provided by the broker for its clients, which may result in increasing the momentum of the information that is the mailing through the Internet, which could lead to the possibility of delay in the arrival of information or update the prices of securities on the user’s program, In addition to the role that might be played in connection to the service interruption or failure.
6. crashes computer user’s computer by the investor.
The faults that might be exposed to the investor may lead to reduce the chance of complete operations or inability to definitively implementation, or lack of access to the Internet to connect to the service, or even non-receipt of notification from the electronic trading about the orders entered system messages your computer monitor, so The investor must make the necessary regular maintenance for your computer automated him for fear of sudden crashes.
7. errors in the prices of Information and trading in securities that are transmitted through the online trading platform.
Crash mentioned above and which are exposed systems and software, or hardware and communication lines used to access the information incorrectly to the investor may lead, so the investor in case you notice any errors in prices and other trading information to stop using the service immediately and inform the mediator so fearing check undesirable losses where.
8. third party intervention.
Of the risks that may also exposed to the investor is the third-party intervention in the network, including the objection or notification sent by scammers messages and impersonators such persons who are able to monitor web sites and access to and tampering with the process.
It also includes the kind of risk that the introduction of third party programs and systems to your Computer private investor, including viruses, intrusion and infiltration …. etc, which can interfere with or damage the contacts and cause damage to the computer user systems.
So the investor must be based always run sunscreens and protective of hackers and intruders programs (Firewalls), and anti-virus software, and working on the follow-up updated periodically process, according to the requirements of these programs which ensure the reduction of the risk of third-party intervention in the investor computers.
9. internal modifications to the computer systems of the investor by his employees or his employees (in case the investor is a legal person).
10. negligence in dealing with sensitive data and confidential by persons using the investor or the data stored in computer systems.
11. failure to provide programs and protective sunscreens (firewalls), passwords and other access control mechanisms on the computer your customer, which helps in reducing the risk of use of the Internet in communications and execute trades.
12. Any other risks resulting from the use of the Internet.
The client also acknowledges that it is aware that the security and protection techniques, and methods used for the purpose of intrusion and access to Internet sites and tampered with and interception and interference in Internet connections and any other risks resulting from the use of the Internet is growing steadily with time, it is necessary to continue to update and procedures for the security and protection constantly techniques and to improve Internet connections and mechanisms execute trades made through the Internet.
Tips for the investor who wishes to use the online trading service
1. Trading online service does not mean direct contact with the electronic trading system in the stock market.
Although the investor follows up securities trading in the neighborhood movement, in addition to going to enter buy and sell special orders by himself without the need to connect with the mediator to mandate this, however, the investor must be aware that the orders entered is first passed to the broker systems to check electronically the adequacy of cash or securities, and any other terms of the balance, and then are routed electronically to the electronic trading system in the stock market. So the investor to linger by the referee on the arrival of the matter to the electronic trading system and not to repeat the command input tries so as not to lead to the implementation of the double undesirable bought or sold quantities, the investor understands and agrees that it is responsible and no one else for any repeat orders inputted through the Internet.
2. Consider the protection and confidentiality applied by the brokerage company policy.
3. Ask the mediation of how direct contact with the customer service if you wish to inquire about the service, or if there are problems, the company would like to inform the mediator, and the mechanism of action adopted by the company in an emergency.
4. The introduction of orders through the Internet does not mean implemented immediately.
If the investor to enter a purchase order or sales through the program does not mean you execute this command immediately, the arrival of the entrance is to the trading of the many reasons that have been mentioned earlier system may be delayed, and of the failure or the Internet or systems and software used crashes, or delays resulting from check up mechanism to the mediator systems before passed to the electronic trading system, or also as a result of severe overcrowding on the service provided by the broker or the intensification of trading activity movement in the stock market, or as a result of changing supply and demand before the arrival of the matter to the electronic trading system and therefore are recorded command on the command log awaiting execution.
For the investor should realize that what is a service provided by the broker to enter purchase orders and sales through the Internet only, and does not guarantee or executes these commands and he must follow the state of the entrance, which has the matter and do not try to repeat the same command entry.
5. delayed renovation investor account balances immediately upon execution of the order.
In some cases, and in spite of the implementation of the entrance it has an immediate is not updated account balances and simultaneously with the execution, and this is due to the possibility of delays in the receipt of a notification to the implementation of the entrance is a result of the reasons for the failures mentioned earlier, failure to receive the confirmation message does not necessarily mean failure to implement it, so The investor must have to wait a bit and follow-up messages received and not try to re-enter commands, and in the case of non-receipt of any message is best to contact with the mediator to inquire on the status of the matter and inform him of the entrance of the problem.
6. investor must comply with the minimum technical requirements specified by the mediator, which should be available in a line of communication with the Internet, and computers used to run the service.
7. In the event of loss of the password, the client does the following: – the client to communicate with the mediator on the hotline and ask him to change his password (which include stopping the password and replace it with a new word) after the mediator to make sure the caller identity of the client.