The Importance of Transparency in Online Trading

Transparency in trading: Illuminates the trading journey!

Have you ever seen an advertisement for a car with an appealing price, but something felt off due to a lack of details? Now, imagine the same ad, but with comprehensive information on the car's condition, maintenance history, and repairs. Your perception of the offer would likely change. This illustrates the impact of transparency—defined by the International Capital Markets Association (ICMA) as the extent of information available to market participants.

Like car advertisements, the importance of accurate and accessible information is critical in online trading. This article will explore the significance of transparency for traders in financial markets.

Why is transparency important in trading?

Let's start with this fact! The best opportunity in trading is not related to a specific market, instrument, event or date, but is directly related to the information that the trader has that enables him to make the best decision at the right time.

Well! If you think that this transparency stops here, then we must give you a broader vision about transparency.

If you are one of those who care about getting the lowest costs, transparency contributes to achieving that as well, which is what the World Trade Organization (WTO) indicated when it said that available and correct information allows the recipient to determine the most appropriate time to make the most economical decision.

Rather, transparency in trading enhances understanding of the hidden costs and fees involved in executing transactions on various financial instruments, thus achieving two things: you determine your goals with confidence after clearly identifying the costs and avoiding the unexpected costs that arise due to lack of clarity.

Transparency also relates to brokers or brokerage firms! Which represents the main door to entering the world of trading.

The more transparency these companies enjoy, the better it is for increasing reassurance in adhering to the regulations and legislation that protect the rights of the trader and providing services according to the best international standards.

Simply! These regulations are like a guaranteed certificate that everything is fine!

It does not stop there, but it goes as far as eliminating the phenomenon of market manipulation, as the rule of manipulators lies in exploiting the loophole of the absence of information, or incomplete, misleading or late information.

This can be easily revealed by the trader through transparency, which keeps him informed of market data, available reports and correct information firsthand, in a way that closes the door to any manipulation.

The role of technology in ensuring fair and transparent trading!

There is an undeniable fact: in a field such as the financial industry and online trading, technology becomes a decisive factor in achieving goals.

To clarify this, we will depict the matter as an accumulated matter.

Through technology, the trader's experience improves by using a more advanced platform each time, in addition to obtaining the necessary information at the right time without delay.

With technological progress, the trader moves to another level of transparency, especially considering the artificial intelligence revolution. The issue is not only about obtaining information quickly, but also about interpreting this information correctly and linking it to a huge amount of other information and analyzing it away from bias or human error.    

Start your trading journey with clarity:

Started trading is available to everyone, but achieving success in it requires making an effort to discover and acquire the basics, continuous learning and developing strategies, which are things that become more effective the more trading is surrounded by a great deal of transparency.

So be well informed, examine everything you read, link it to scientific foundations, and start your trading journey with clarity.