Knowledge Center

YouTrader is a professional discount brokerage and an international financial institution which allows the buying and selling of financial assets between the buyer and the seller. The goal of the company is to maximize the client’s trading technology experience. It provides services for equities and options.

There are various kinds of tools that have been provided by YouTrader.

1. Financial calculators

Financial calculators are calculators which provide an accurate rate of the stock while providing some details like: a) current price, b) options expiration date and c) the dividend given by the stock exchange.

2. Portfolio managers

Portfolio managers play a major role in today’s markets. They have significant knowledge and experience. Individual investors often do not have the required knowledge to conduct today’s increasingly complex and strategic decisions. Individual investors can make an investment and then incur significant losses, unfortunately blaming the broker for it. Portfolio managers help individual investors to make analytical decisions that are sensible.

3. Online softwares

This is software provided by the company to clients on request. Clients who have a busy schedule can keep an eye on stocks every time. They don’t want to miss the chance, since brokers might be busy with other clients. Through this software, the client can trade right from his or her home or from anywhere, using a laptop. This person typically trades as a broker. Through this software, the client can view charts, analyze them and then invest.

4. News feed

They display the video of current market sessions on the website and then show specific news if it’s important or related to the stock exchange. If a company is splitting and has announced bonus shares and upper/lower circuit in any stock, this kind of news is immediately shown because the brokers also need to be aware of it, since they have to reduce the client positions, if any. Whatever stocks the client has to buy or sell, the details with the brokerage and opening and closing balance of the account is provided. This is helpful for clients, since they will know the account summary on a daily basis.

Traders can easily access the Account Manager window by selecting it in the main window (Trade Account Manager).

This window displays all of the details of stocks with their price ratios. In this window, all types of stocks are listed. By looking at this trader, one can choose which stock he or she can invest. It shows the details of the client’s accounts and also includes information about the stocks that  were bought or sold, the number of shares bought or sold, the price, etc.

There are five columns in this window:

1) Symbol- It shows which segment of stock has been bought or sold.

2) Account- client account details.

3) Number of shares allotted

4) Bid-buying price

5) Ask-selling price

Account manager window

Trade manager

This is easily accessible. It can be accessed by selecting (trade/Trade Manager) from the main menu. This window shows the details of the stock in which clients traded on past transactions. This window is beneficial to the client, since there are a number of stocks.

Position manager

This can be accessed by selecting (trade/Trade Manager) from in the main menu. This window displays the stock details which the client has bought and sold.  This window additionally enables the client to view the details of the transactions he or she has executed during the entire day.

Details of the window:

1. Name of the stock
2. Number of shares
3. Buying / selling price
4. Expiry date
5. Margin

Electronic Communication Network (ECN) is a system used for computers outside the stock exchange. The Electronic Communication Network was started in 1969. The two products of Electronic Communication Network are “stocks” and “currencies.” The Electronic Communication Network is also called ‘Alternative Trading Network’. To trade through ECN, the investor should have an account with YouTrader for direct access trading. The Electronic Communication Network can operate either on computer terminals or network protocols.

1. Fee structure

Electronic Communication Networks earn profit while adding or removing the liquidity. YouTrader charges credits ranging from $0.003 to $0.00295 per share for liquidity providers and debits from $0.0035 to $0.003 per share for liquidity removers.

2. Adding/Removing liquidity

The term adding/removing liquidity is the same as buying and selling. The security which has been bought through Electronic Communication Network is called “adding liquidity’ and the security which has been sold through Electronic Communication Network are called “removing liquidity.”

3. Market makers

Market makers are those people who quote on both the price that is bid on, and the offer, at the same time, to earn the spread profit. Spread is the difference between the buying price and the selling price. Market makers basically create the demand and supply in the market. As they quote both the price at the same time, they would buy and sell the stocks in a large quantity and those then affect the current market price of that particular stock. If market makers want to make a price rise, they enter the high amount of bids and as the price soars up, they will sell their stock and make significant profits.

According to an announcement by U.S. Securities and Exchange Commission (SEC)  (effective January 15, 2010) the fee under Section 31 will be reduced from $25.70 per million dollars trade value, down to $12.70 per million dollar trade value. Just as in the last change of rate, January 15, 2010 will remain the settlement date basis for the new rate relating to equity & option trades. The effective rate that will remain in force, until January 14, 2010, will be the current rate of $25.70 per million dollars.

The assessment relating to security futures transactions Section 31 will also remain constant at $0.0042 per round turn transaction.

The Investor and Capital Markets Fee Relief Act requires the filing and securities transaction fee rates to be adjusted annually by the commission; the levels will be decided by the SEC, which will seek estimates likely to generate collections that will satisfy numeric targets the statute has established.

Funding available to the Commission will remain independent of the adjusted fee rates. The announcement of fee rates for fiscal year 2011  was announced by the Commission, latest by April 30, 2010; such rates will become effective on Oct. 1, 2010, or after the Commission enacts the fiscal year 2011 appropriation, whichever is later.

The Section 31 transaction fee rate relating to EDGA and EDGX exchanges has been reduced, effective February 21, 2012.

Any trade settled on or after Tuesday, February 21, 2012, or traded on or after Thursday, February 16, 2012, will bring a rate of $18.00 per million dollars, with the current rate of $19.20 per million dollars to remain in effect until February 21, 2012. 

The Securities and Exchange Commission has announced that on February 21, 2012 the fees applicable to most securities transactions will decrease from $19.20 per million dollars to $18.00 per million dollars. The assessment of $0.0042 on each round turn security futures transaction will remain unchanged.

On May 2, 2011, the SEC announced fee rates for fiscal year 2012 but they did not become effective. This was in keeping with the provision that a regular appropriation to the Commission for fiscal year 2012 had to be enacted by October 1, 2011 to make the rates effective, but said enactment did not take place. In its place, the SEC is revising the rates in accordance with the Dodd-Frank Wall Street Reform and Consumer Protection Act's amendments to Section 31 of the Exchange Act.

Use a right mouse click to open a configure window, regardless of the window you are in. You can also configure fonts and colors regardless of your window. To access the Market Watch window, use the right click function while taking care to ensure that you are not doing it on a security symbol. Similarly, except on a security symbol, a right click anywhere will help you access the Trade Manager window. Right clicking either on the numbers on the left panel or on the column titles at the top will help you access the Top 20 window.

There are basically two types of charts in the stock market.

1. Fundamental charts

2. Technical charts

Fundamental charts are those charts which include the details like assets and liabilities of the company

Fundamental charts include:

A. Net worth of the company

It includes the capital and the net profit of the company.

B. Expenses

It includes the payments which are made by the company, like salaries for employees.

C. Face value of share

Face value means the price of stock at which it was listed.

D. Dividend

This refers to the dividend the company had given in the past years.

E. Returns

It includes the return ratio of the company in the past years. It covers all the details which come under receipt and payment side.

Technical charts are those charts which include details like outstanding contracts in the cash market.

Technical charts include:

A. Volumes

Volumes mean the number of trade done on a particular stock on a particular day.

B. Outstanding contracts

It means the contracts which are pending in the running market.

C. Volatility

Volatility means the fluctuation in the stock. The more the stock will fluctuate, the more the increase in the ratio.

One of the most important features is zooming. Client can zoom in and out so that the figures and necessary details can be easily viewed.

Trader can access the market watch window in the main menu by selecting Trade/Market watch. This  is the window where the trader can add or remove the number of stock. The trader can create as many windows as he wants. If the trader wants to go on sector wise, he can go with different securities of a sector in different windows or all in the same window. The trader can create this in the way that he or she feels comfortable.

Columns in the Market Watch window are:

• Symbol – Security symbol
• Change – Net change from yesterday's 4:00PM close.
• Last – Last trade
• Bid/Ask – Level I BID/ASK prices.
• High/Low – Today's high and low.
• Open – Today's opening trade.
• Close – Yesterday's 4:00PM closing price.
• Volume – Today's total volume.
•  

The trader can change the columns according to their satisfaction by simply dragging the column. It can be adjusted it as desired. From the market watch window, a trader can keep an eye on the number of securities at the same time. This window is helpful to brokers, especially when there are a number of securities. It makes the life of clients easy through a simplified process and it also saves time for both the client and the broker.

Moving Symbols

• In the first gray column on the left side, left click and swipe up or down, highlighting all symbols to be moved.
• The entire row must be highlighted. Next, right click anywhere on that first gray column.
• A dialog box should open with 3 options: Sort, Move and Show All.
• Highlight Move and left click. Left click again on the row where you want the symbol to be moved.
• A dialog box should open.
• Click yes and the symbol(s) should now be moved.

You can define parameters using alerts; a visual alert that may or may not be accompanied by an audible alert will be triggered by these parameters, when fulfilled.  Additionally, a predefined order can be triggered by setting the alert accordingly.

Go to “Tools” on the toolbar and select Alert &Trigger.

This will cause the Alert Config window to open.

You can amend the parameters by clicking on an alert that was configured earlier, and then clicking Edit. (Alternatively, you can double click on the row).

You can remove an alert that was configured earlier by clicking on it, and then clicking Delete.

You can turn off sound on a triggered audible alert by clicking on it.

You can add an alert by clicking, and the Alert Item Edit window opens.

You can name an alert by typing in a name.

Unless an alert is based on time of day, you can enter the security symbol related to it by clicking SecSym.

By clicking Add, you can cause the Condition Edit window to open, thereby allowing the desired conditions to be entered in the three fields. Then click OK to validate.

You can create multiple as additions to the same alert, by clicking Add.

You can adjust the parameters by clicking on any row and then clicking Edit. (Alternatively, you could double click on the row).

You can remove any row, by clicking on it, and then clicking Del.

You can size the columns to fit the data by using the Fit key.

You can enable the alert by checking Enable.

You can cause a triggered alert to be automatically deleted by checking Auto Delete.

You can cause the alert to repeat daily or intraday, depending on the alert, by checking Repeat.

You can cause the alert to be triggered by checking Triggered.

You can cause a pop up window to be generated when the alert is triggered by checking Show Alert Window.

You can cause your computer sound card's external speakers to generate an audible alert, by checking Sound.

You can cause your computer's internal speaker to generate an audible alert, by checking Beep.

You can cause the audible alert sound to be continuous, like an alarm, by checking Loop.

You can replace the default sound with a wave file of your choice, by checking Browse.

You can preview selected audible alerts, by checking Preview.

You can cause specific Pre Defined orders to be triggered by checking Send Order.

You can open the Select Pre Defined Order window by clicking Browse. You can select Pre Defined orders or Groups (Baskets) for triggering after ensuring that Alert parameters are fulfilled.

You can silence a currently triggered audible alert by clicking Turn off Sound.

You can reset a triggered alert, by clicking Reset.

You can save your settings by clicking OK.

You can cancel your changes by clicking Cancel.

Traders can access the time and sale window from the trade option in the main window (TradeàTime and Sale). The time and sale window is a very important window for trading. This window displays the time of purchasing and selling orders. As the order gets executed immediately, it is displayed. From this window, an investor will view his daily transaction. Basically there are four columns in the time and sale window:  the time, the quantity, the name of the stock and the price (bid/ask).

Color Code on Time and Sale

• Blue represents a trade at the Ask price.
• Red represents a trade at the Bid price.
• Orange represents a trade between the Bid and Ask
• Black represents a trade below the Bid
• Green represents a trade above the Ask.

As the trader performs trading the entire day, a time and sale window is needed. The trader can easily receive the details of the day’s trade. The trader can also make the change in the settings, in the window. It means the trader can shift the columns as desired. They can set the first column to be bid/ask price but if they want the time to be the first column, then the trader can simply drop and drag the column. If the trader wants to set default settings, they can do it any time. The trader can click on “Load default settings” in the time and sale window and it would be accomplished. The Time and Sale window can function alone. It does not need to be linked to a Trading Window to function.

                                                                                            Time and sale window

On this window, you can access a live listing of NASDAQ (NASD) and New York/American Exchange (NYSE) securities, ordered according to the most active P/L. Percentage gainers and losers are also listed. You can load a Trading window by right clicking on a symbol.

We have a series of self-explanatory Hot Key Commands. 

By opting for the Level II plus Shave command, you can receive $.001 added to the best Level II Bid. In other words, to have $.001 added to the best Level II Bid, opt for a "Plus" command.

Similarly, by opting for the Level II minus Shave, you can get $.001 reduced from the best Level II Ask. In other words, to have $.001 cut from the best Level II Bid, opt for a "Minus" command.

While opting for the Preferred Route Switch command, note that the default mode of the End key is to toggle between the routes you prefer. You can configure your preferred routes; to understand how to do this, look at the bottom section of the Trading window. You can also assign the End key to any Hot Key of your choice. You can accomplish this by using the Preferred Route Switch command.

By opting for the Cancel One command, you can cancel the last order sent by you.

By opting for the Cancel by Symbol, you can cancel all open orders carrying the same symbol as the last order sent by you.

By opting for the Cancel All command, you can cancel all open orders.

Island Book shows the open orders in the running market. It denotes the orders which are pending and which are not executed, but are recorded in island book. There are various traders in the market and they use many bids/offers for a particular stock to buy and sell.

For example: the market price of xyz stock is $200 in the live market but the trader wants to buy at $195. Now, he will punch it and that order will be recorded in island book. When the price drops to $195, the order will be executed. Basically all of the pending orders are recorded on island book.

To display the Island book, open it through the main menu by selecting: Trade à ISLD Book. This window can be linked with the trading window, 8:00 AM ET to 6:30 PM ET. Limit only.

Island Book order matching

All open ISLAND orders are canceled at 6:30 PM ET. Island book is one of the most dominant ECNs in today’s market.

Basically there are four columns in this window

$.Bid price

$.Size

$.Ask price

$.Size

                *Island book window

Various kinds of information are provided by You Trade to its clients. There are different quotes in the stock market and some of them are as follows:-

1) Last traded price

This quote displays the last trading price of a  stock which the investor has chosen. This option can directly be selected from the main window by selecting Tradeà Last trade price.

2) Advances/Declines

This quote shows the amount of increase and decrease in a particular stock since there are a number of securities in the market, and it shows the 52 week high and low of that particular stock. This information is helpful to investors, as the investor becomes familiar with the high and low of that particular stock.

3) Volume indicator

This quote shows details like the number of trades done in a particular stock in a particular day, called “Volumes.” The more the volume, the higher will be the demand of that stock. Similarly, the demand of the stock and the price are directly proportional to each other.

 4) Volatility

Volatility means the fluctuation in a particular stock. Just as the stock market can fluctuate a lot, so do the stocks. A particular stock can fluctuate only by 10% of its value (for example, if the price of the share is $100, it can fluctuate up to $10 and down by $10, which is $90 to $110). According to the ratio, the investor makes a sound investing decision.

5) Money flow

This quote shares the information such as the outflow and the inflow of funds in a particular stock on a particular day. This is called “Money flow.”  This refers to buying and selling of a particular stock. It shows the ratio of percentage of FII’s investment to that of the individuals. It also shares the information about companies’ new project and inflow and outflow so that investors can make the best decision for investment.

These are the quote’s information which You Trade shares with the client for the purpose of investment. There are other quotes as well, such as different indices, economic calendar, market cap and many more.

The trader can access the news window from the main menu by selecting Trade/ News. The news window displays the news from all parts of the globe. It means a trader learns what is happening in the world just by glancing through this window. Since the stock market is linked with the world and policies get changed, the news will surely affect the stock markets. It is very important for the investor to know what is happening in the world and which sector is performing well, before investing. The particular sector which will be performing well will attract more investment opportunities. This is an important advantage that You Trade clients can get.  The news window option is in the terminal.

Recently, when there was a crisis in the U.S., the credit policy ratings fell. Not only had the U.S. suffered due to the crisis, but also the whole world, since all are interlinked with each other. A stock investor should be aware of what is going on in various parts of the world. There are three columns in the news window:

1) Date – time and date of the news

2)  Symbol – particular share symbol related to that news

3)  Headline – the financial headline.

Passwords are instrumental in maintaining the client’s security and privacy. There are two accounts where YouTrader provides password access to the client. First, on the bank account and secondly, on the Demat account. Every client has to maintain one bank account with his trading account. It means that he or she should not change bank details repeatedly. There is the capacity of one bank account for payments. Procedure for changing password of bank account:-

1. The client has to login: first, from his or her bank account, simply go on to the website and select the option “Change password.”
2. The client has to enter the old password in the first dialog box.
3. Then client has to enter the new password in the second dialog box.
4. The client will then be prompted for password verification. It means the client has to enter the new password again in the third box and it should match the password which is in the second dialog box.
5. The client should then click on the “Submit”  button and their new password is saved successfully.

In the Demat account, the client can view details about buying and selling of the shares.  The bill is generated after three days but the client can see it on the same day of trading. Simply by  logging into the demat account, the client can view it. The Demat account helps the client by checking the balance, the brokerage charges and everything that is related. You Trade provides a unique password to each client.

Procedure for changing the Demat account (trading program) password:-

1. The client goes on the You Trade website and select the option of “Login” and then selects select “Change password” from the main menu.
2. The client enters the old password in the first dialog box.
3. Then the new password is entered in the second dialog box.
4. It will ask for a verification password. The client enters the same password again on third box.
5. Click on the “OK” button and the new password is saved successfully.

There are various kinds of errors and technical problems that a broker faces. Since brokers are human beings, mistakes are a possibility. Some errors involve the settlement of funds, transferred amount on other client’s account, etc. Technical problems can include the software not working properly or a wrong entry in the software that has been executed due to printing mistakes. Some Errors and technical problems listed are discussed below.

Problem with redemption:

1) Fraud

2) Price manipulation

3) Problems with account liquidation

4) High pressure sales tactics

5) Limited partnership

6) Taking advantage of foreign investors

1. Problem with redemption

This means there are a number of clients who take the pay out on the same day and at the same time as brokers. Meanwhile, brokers tend to make mistakes at times. Sometimes, the client doesn’t receive the check due to courier service delay.

2. Fraud

Fraud can originate from anything that goes wrong and the broker is not aware off. This usually happens when the client is used to giving demand drafts and takes the limit from the RMS department and afterwards that particular DD bounces.

3. Price manipulation

Price manipulation is for traders who are speculative in the market. It means they gamble in the stock exchange and can this practice can create problems to the broker.

4. Problem with account liquidation

Sometimes the client might not have sufficient funds in the account but would want to trade more to reduce the loss or to pay the margin. Though they are friendly with the broker, the broker can’t take the risk. It is a rule that, when more than 85% margin is crossed, it needs to be squared off (sold).

These are typical types of errors and technical problems faced by brokers in the stock market.