Definition of online trading

the buying and selling of stocks or other securities through the Internet. Instead of paying a broker to type transactions into a computer, you type them in yourself. Brokerage fees are much lower, and transactions are completed more promptly. Unfortunately, the broker's wise counsel is absent, and fortunes have been lost through speculative day trading.

buying and selling securities using the Internet or broker-provided proprietary software that works through the Internet. Online trading is distinguished from wireless trading, a nascent area of service where brokerage customers can trade via cell phones, pagers, and hand-held organizers.