| | When you start trading in the stock market, it looks really easy. You look for the company you want to invest in and you buy the stock. However, there are different types of orders that you can execute when dealing in the stock market. Let's take a look at the three types of trading orders that you can put in. | Market Order | A market order is a request by an investor to buy or sell a security at the best available price in the current market. It is considered the basted and most reliable way to enter, or exit, a trade. This is also the likeliest method of of getting in or out of a trade quickly. Market orders are well suited for high-volume securities like large-cap stocks, futures, or ETFs. | Essentially, what happens is that a trader will call their broker and ask to buy a certain number of stocks at the bid-ask price. The broker will find out how many shares are available at the ask and the order will be carried out. | Limit Order | A limit order is a type of order to purchase or sell a security at a specified price or better. There are two types of limit orders: buy and sell. A buy limit order will be carried out at the limit price or a lower one, while a sell limit order will be carried out at the limit price or higher. | If you are placing a buy limit order, then you would call your broker and your broker would see to it that you pay the price you specified or less. If you are placing a sell limit order, then your broker would make sure that your stock sells at the the set limit or higher. | Stop Order | A stop order is an order to buy or sell a security when it's price moves past a particular price point. There are various types of stop orders but the most common type of stop order is a stop-loss order. A stop loss order is used to avoid major losses on the stock market. If someone wants to decrease the risk of losses on a stock, they can simply sell a security once it goes below a certain price. However, the investor also runs the risk of the security price skyrocketing after the stop order is carried out. | There are four different types of stop orders, all of which, we will discuss this Thursday. So keep an eye out in your inbox for this newsletter and all of our other newsletters with stock market tips. | | | | | | | | | Our #1 Takeover Target for March | On September 10, 2018, a tiny biotech firm won a patent on a new treatment that can "Cut & Paste" any disease from your body. The Nobel Prize Committee called it "The Holy Grail of Medicine." This under-the-radar company is not yet a household name.
Discover Mr. Jovine's Next Winner Here | | | | | |
This email was sent to phanhoa1821960.trader@blogger.com by Tips4Traders
No comments:
Post a Comment