Business Studies, asked by asyadav1431pdbuf8, 11 months ago

What is Screen Based Trading System ? Write its advantages.​

Answers

Answered by queensp73
7

Answer:

To obviate this, the NSE introduced screen-based trading system (SBTS) where a member can punch into the computer the quantities of shares and the prices at which he wants to transact. The transaction is executed as soon as the quote punched by a trading member finds a matching sale or buys quote from counterparty.

ADVANTAGES

SBTS enables distant participants to trade with each other, improving the liquidity of the markets. The high speed with which trades are executed and the large number of participants who can trade simultaneously allows faster incorporation of price-sensitive information into prevailing prices.

Explanation:

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Answered by gratefuljarette
1

Screen-Based Trading System:

  • It is a method where people from distant locations are able to deal with each other which helps in improving the cash flow of the markets.

Advantages:

  • The trading is done with high speed and a large number of competitors who are able to trade simultaneously allowing faster incorporation of price-sensitive information into present prices.
  • The system helps in improving the effectiveness of information in the markets. The SBTS helps the market competitors to see the entire market which  makes the working of the market more clear, leading to increased confidence of the investors
  • It started 'nation-wide SBTS' which is given the complete 'transparent trading' mechanism. The regional exchanges have forces NSE to introduce SBTS since they have lost a many business to NSE.

To know more about NSE

Explain the various segments of the NSE.

brainly.in/question/1359365

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