Before getting straight to where stock come from, let’s first clear things out what trading stock actually is. These are trading options with only two possible outcomes. Every option is with expiry date/time. These trading options are easy to trade even for starting traders and the initial amount of the investment can be as little as few hundred dollars.
The History of Stock Trading
The history of online trading can be tracked down to 2008 when it all started with the Securities and Exchange Commission’s approval of trading these options. In 2008 the Chicago Board Options Exchange (CBOE) and the Stock Exchange gave access to stocks and shares for public trading. Since then the online trading has expanded vastly.
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Although the Stock trading became popular in 2008, the existence of these options goes way before that. Years before that they were still accessible for trading but only for banks, big institutional traders and net-worth investors in the Over- the- Counter (OTC) market. It was basically the same situation as with stocks before 1997.
Trading Stocks and Shares
The practice of trading can actually be traced to 1973 when the CBOE was created. It was difficult to differentiate between the trading options due to the fact that the regulatory framework was not yet developed. In the very beginning there were only Call options available. Traders who wanted to purchase stocks on CBOE had to buy the contracts on the S&P 500 index, and only one type of options (the Call options).
2 Factors for The Popularity of The Stocks and Shares
For the blooming of the stock trading are two major factors to blame. The first one is the expanding of the variety of options and the development of better trading platform software. And the second one is the inclusion of stock trading in online trading when afterwards it became popular much quicker.
Stock Trading Today
Nowadays trading with stocks and shares gives traders a lot of flexibility. You can choose the amount of investment, the strike price and the expiration period. You are also allowed to purchase insurance on the stock trade, in exchange for which you will lose only part and not the full amount of your investment.
Stocks and Shares are now virtually available across every tradable asset. Traders are presented to a palette of different contract types as well as expiration periods lasting from one minute to a year. Recently, not only specialized brokers, but regular stock brokers have also included in their trading platforms the stocks and shares for their traders.
With more and more brokers and vendors coming up the trader now have better options when it comes to trading with stocks and shares. With the fast speed that the technology evolves every day, the predictions are that the popularity of online trading will continue to grow.