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DAT (Direct Access
Trading) means sending your Stock Trading buy and sell orders
directly to the market you are trading, instead of thru your
broker. When people talk about "direct access trading" they
generally mean a NASDAQ Level II Stock Trading system (for
example RealTick). With a direct access Stock Trading system,
a stock trader can choose how to route an order to best suit
himself. This is either via an exchange (e.g. NYSE) , a computerised
system (such as an ECN or electronic communications network),
or via a market maker (a 'big' player like JP Morgan). The
stock trader can also send orders through a direct access
broker, who can execute those buy/sell orders much faster
than a typical online retail broker like Ameritrade. As you
will understand, this Stock Trading speed may be essential
for day traders, but is not really needed for those who are
Stock Trading using the Holy Grail Indicator. You can expect
to pay more for a direct access broker than you would for
an ordinary online trading account. If you are using the Grail,
getting the last tenth of a point out of a trade is pretty
much inconsequential, as you want your stock trades to last
several days, and the gains you expect are much bigger than
those sought by day traders.
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