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  Understanding CAT
Who will use CAT
Principles
Short-term price movements are entirely random
newTRADE
multipleCHOICE
smartLIMIT
Who will use CAT
General
Brokerage firms/ Service providers
Account Executives/ Portfolio Managers
Retail Investors/
Active Traders
Asset and Fund Managers
Computer simulation
Psychological factor
FAQ

   
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2. Brokerage firms / Service providers
Investor profile

Retail portfolios are mostly tied up (stocks, bonds, mutual funds, etc.). There is little available cash.
Buying one stock means selling another - 'Now is the time to buy ..... .Yes, but with what ?'. Opportunities are passed up.
The retail investor has a problem timing his transactions. He uses limit orders to get a better deal. The market can move away from his limit order.
Investors dislike selling at a loss and mostly sit on losing positions.
Internet trading has become an important part of retail investing.
Many investment strategies are based on comparing the price of a share to a benchmark or index.
CAT is designed to be part of a brokerage firm's online trading services.
1.  Clients enter orders with savings criteria as explained previously.
2. When savings conditions are met, orders are executed.
3. No fee is charged for orders entered. Instead there is a CAT surcharge upon transaction.

Providing such a service to the firm's retail clients has the following advantages:

CAT increases the volume of business:
1. Clients enter more orders because they save money.
2. Keeps portfolios active by allowing investors to switch out of losing positions.
3. New trading strategies mean new business.

A premium service provided by the brokerage firm on its website. Cutting-edge technology will expand client base.

Each newTRADE execution consists of 2 commissions and a surcharge.

Investors will trade more freely knowing that orders will be executed only when and if savings criteria are met.

newTRADE allows the user to time his transaction. It also eliminates an important psychological factor.
The above translates into new business and increased commission revenue.
Acceptance of the product.

The product is new, saves money and is easy to use.

Today's unsettled markets will make such a product the required tool for most retail investors. Share prices (especially on Nasdaq) have been unusually volatile in recent times and moves of 5–10% in a single day are not uncommon.

Retail investors are not professionals and cannot follow the markets on a minute-by-minute basis. newTRADE, multiple CHOICE and smartLIMIT do just that and users will be able to have orders executed at conditions which at present they would obviously miss.

Today's investor has few tools at his disposal. He has no access to program trading.
To offer CAT in a real-time environment please contact us.

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