STOCKS BASICS: TRADING STOCKS AND ORDER TYPES

TRADING STOCKS:

You can easily learn the buying and selling of shares of stocks. Firstly, you have to choose a broker for your trading. This can be made by brokerage account. Secondly, there are 12 types of trade. You can place it with a stock broker. Thirdly, how to avoid expanses that can destroy your trading profits. Next, you have to see that how to trade stock on margin with borrowed money. After this, how to short a stock. Then, using ADR’s to trade foreign stocks. Then, role of market makers in trading stock. Stock trading and investment bank. There are many other ways, including these in trading stocks.

ORDER TYPES:

Market Order is the order that instructs the broker to buy or sell the shares at available price. A market order is an order that tell the broker (an online trading platform) to buy or sell shares at the available price. If you want to buy 100 shares of AAPL at the market, and the price shows: Bid: $139.80 (100), Offer: $140.00 (50), Last: $139.95 (250). This shows us that the last trade was 250 shares at $139.50 and it shows that 50 shares are offered at $140.00. For example, another 200 are presented at $140.05. Your market order will buy the 50 shares at $140.00 and then will purchase 50 more, at the next best available price at $140.05.

Limit Order is the order in which you don’t agree to buy your shares until you get all 100 shares, that you want. A limit order can also be chosen all-or-none (AON), means that you will not ready to buy your shares till you can get all 100 shares that you need to want. If the original limit order in this example were AON, you will not buy the 50 that are given until another 50 offered. Limit orders are used by those persons who are mostly worried with the price they want to receive, but they are not sure fully that the size of their order will be filled. Price versus getting filled on the size of your order are the key trade-offs between marketplace and the limit orders.

Stop Order is the order to buy or sell at the time when price of its security increases. At a point where loses can be secured.Stop orders are dependent on a certain price level being managed in order to activate the trade. With a stop order, your trade will be finished only when the security you want to buy or sell reaches a certain price, usually called the (the stop price). When the stock reached this price, a stop order becomes a market order and it will have filled. For example, if you get stock XYZ, which now trades at $20, and you place a stop order to sell it at $15, your order will only be filled when stock xyz drops below $15. Also called as a stop-loss order, this will allows you to lessen your losses.

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