Trading, as we know it, has evolved significantly over the years, especially in the last two decades. Many years ago, trading involved physical presence at an Exchange, with hand signs and signals. Today, this landscape has transformed drastically, with traders conducting transactions over computer screens using sophisticated trading platforms. The terms "online" and "offline" trading have emerged from this technological shift.

What is Offline Trading?

Offline trading occurs when a trader physically instructs their broker to execute a trade on an Exchange. This can be done through a phone call or by visiting the broker's office. The broker verifies the trader's profile and then executes the trade on their behalf. Offline trading tends to be time-consuming and may involve multiple interactions between the trader, broker, and the Exchange. Additionally, there is a risk of stock prices moving unfavorably during this process.

While offline trading is becoming less common due to the prevalence of online trading platforms, it remains relevant in situations where technical failures or a lack of a strong internet connection hinders online trading. Traders may opt for offline trading when they can afford to wait for the time it takes to place a trade offline, particularly if they anticipate minimal fluctuations in the stock during this period.

What is Online Trading?

Online trading involves using a trading platform to execute trades on the Stock Exchange. It is well-suited for short-term trades as it significantly reduces the time required to place a trade compared to offline methods. Online trading has become the more prevalent practice, offering efficiency and convenience to traders.