The stock market future, just like most of its stocks, is a volatile, ever-changing impulsive industry. When we look back to the start of the Indian stock market trading, it all started under a Banyan tree in 1855 in Mumbai. Then, we entered the 1990s and the trading world experienced a swift transformation. Traditional open floor concept changed into the sophisticated electronic and screen-based trading system. This was known as BOLT on BSE as well as NEAT on NSE. Now, we are in the 21st century, where anyone can trade using smartphones from any corner of the world.

Yes, we have come a long way. But it doesn’t mean that the advancements are just halted, for we are witnessing a yet new transformative era of new trends and technologies in the market. Let’s explore these in detail in this piece of writing:

Power of Technology in Stock Market Future

The Indian capital markets today are among the safest and most technologically advanced in the world. One reason is that we have smoothly transitioned to the T+1 settlement regime. The same day, shares purchased today are credited to the investor’s demat account, and the seller’s account is also credited with payment. In the world, very few nations use the T+1 settlement system.

Today’s an investor is able to open a trading cum demat account online in a matter of minutes with just a few mouse clicks, trade from home without relying on his broker, access his trading reports online, and quickly raise any questions thanks to the seamless integration of technology. This is how technology can be powerful.

Blockchain and Finance: Changing the way we invest

Financial technology (fintech) is advancing quickly thanks to blockchain and AI. These technologies are building a more efficient, safe, and accessible financial system. Blockchain evolved as the core technology behind Bitcoin, a decentralized digital currency. But blockchain’s potential goes beyond cryptocurrencies. The decentralized, distributed ledger blockchain records transactions clearly and securely. It can even remove third-party intermediaries such as clearing houses and banks streamline. It can revolutionize the trading system with transparent, and efficient financial transactions and processes.

Key areas where blockchain can transform financial services include:

Money transfers and payments

Banks, clearing houses, and other middlemen are needed to send money internationally. This increases prices and transfer times by days or weeks. Peer-to-peer money transfers using blockchain eliminate intermediaries. Traders and investors of stocks can settle transactions in minutes, not days. And it is way more helpful for financial institutions and agencies than traders. With blockchain networks, banks can instantaneously settle cross-border payments in many currencies. This might transform international money transfers.

Trade clearing and settlement

Stock exchanges can use blockchain to speed up post-trade clearing and settlement, which takes two days. The distributed ledger instantly records trade and ownership details, decreasing risk and enhancing efficiency.

Blockchain-based digital identity management helps streamline KYC procedures. The blockchain can securely store customer-identifying credentials and enable paperless signups for financial goods. It also prevents identity fraud.

AI in the stock market

In the near future, financial institutions may use AI algorithms to examine client data including credit history and spending. These insights allow Fintechs to provide customer-specific financial services.

In the world of trading and the stock market, AI allows predictive analytics for credit scoring, fraud detection, and stock market predictions to reduce risk.

AI algorithms can analyze huge market data including price, trading volumes, and macroeconomic patterns. They can make profitable market-based trades in milliseconds. This helps hedge funds and investment firms compete. Already, nearly 50% of US stock trading is algorithmic. Algorithmic trading will become more common in the Indian Stock market as well as AI improves.

Another sphere where AI can help is customer support. Natural language processing chatbots and virtual assistants recognize common language voices and typed requests. Conversational interfaces enable 24/7 banking support. From checking funds to paying bills, the AI assistant can do the work in seconds.

AI automates loan processing, compliance, and customer onboarding, saving bankers time. This boosts efficiency and speeds up bank services. For instance, COiN, an AI platform, automates 360,000 hours of tedious document review and other duties for one of the world’s oldest financial institutions, JPMorgan Chase.

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Algorithm trading future

With a wealth of subject knowledge, the future holds great promise for simplifying trading with algorithm-based technologies. About 20% of all exchange trading volumes in 2021 have come from mobile trading. Trading enthusiasts have grown to rely heavily on mobile applications such as Moneycontrol, Stockedge, Quantsapp, Opstra, and others for a wide range of market data and information necessary for effective trading. Due to the fact that Algo-based trading currently accounts for over 60% of trading traffic, trading volumes have increased exponentially.

Algo trading lets market players overcome emotions and trade more effectively in milliseconds using predetermined rules. Data analytics lets traders spot market trends, find hidden opportunities, and assess their portfolios in real time. Fintech startups have changed the stock market. Traders can use technical/fundamental analysis software and data analytics techniques to trade in ma.

The stock market future is bright

A graph showing rise of technology sector in India (source)

Thanks to technological advancements, the trading world is now more open, transparent, and secure than ever before. Trading in numerous markets across different asset classes is now possible from the comfort of one’s own trading pod, thanks to technology that has shrunk the globe into a global village. Trading via voice commands, bot trading, and the widespread use of artificial intelligence to make rational investing decisions are the wave of the stock market future. The race is already on and Indian trading or stock market will not be lagging behind.

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