For the first time in the history, there is an opportunity to manage bank transactions, contact brokers, and track the current market prices of shares online. Simply put, anyone can invest in companies operating anywhere around the world directly from home and can monitor the current state of all his or her positions online.
When investing private savings in shares from home, one can become a co-owner of a public company residing in any country. Despite any geographical distance, the new owner of the share(s) is part of the future of the firm (from the time of the purchase), thus anyone can access a powerful position. With the spread of Internet access, it is possible for everyone with a computer to buy and sell shares easily from home.
The online trading is based on the co-operation between different countries. The basis of the collaboration is the settlement system between stock exchanges, which makes it possible to buy foreign shares from local brokers legally, quickly, and easily.
The sale and purchase of financial instruments within the same trading day is called day trade. Day trade is when someone buys and then sells a share on the very same day, or when first the sale and then repurchase happens (on the same day as well). The only difference between the two is whether one has cash or possesses a share at the beginning of the trading. In the case of day trades, brokerages usually charge less commission than normally. Therefore, even a daily increase of 1-1.5% can result a more significant income. It is not mandatory to close an open day trade until the end of the trading day. However, if the day trade is not closed, the brokerage firm will charge the normal commission, as the transaction then counts as normal selling or buying on the stock exchange market. In Hungary, day trades can be executed with any shares listed on the Budapest Stock Exchange.