Direct access trading (DAT),
Definition of Direct access trading (DAT):
Direct access trading (DAT) is the preferred trading system for day traders, for whom success is dependent upon the speed of ■■■■■■■■■ as prices change within seconds. For the average investor who holds stock for years or even decades, DAT is not necessary. There are many DAT systems for traders to choose from, and they vary in speed, accuracy and the commission price charged for each trade. Most direct access firms charge commissions based on trading volume, and on a per share basis. Retail brokerage firms, on the other hand, charge on a per transaction basis.
An Internet-based order entry and ■■■■■■■■■ system offered by some brokerage firms that permits an investor to place trades directly with market makers and specialists, using an electronic communication network (ECN). Direct access trading can provide faster order fulfillment but also entails some extra risk because the order is not reviewed by a registered representative prior to submittal.
Direct access trading (DAT) is a technology system that enables stock traders to trade directly with another client, a market maker on Nasdaq, or a specialist on the floor of an exchange, all without broker interference.
Meaning of Direct access trading (DAT) & Direct access trading (DAT) Definition
