A Beginner's Guide Online Trading

So you want to buy or trade stock?

If you are online, the first thing you need to do is check online brokers such as TD Waterhouse or e-commerce. Opening an account is usually free, and once an account is opened, you can deposit funds into your account for trading.

What type of broker?

The cheapest is to execute only brokers. This basically means that you do not have any advice when to buy or sell stocks / deals. Their job is to provide quotations and fill in orders.

[1945900] What is command?

All participants on the market want to do one of three things. They either buy, sell or hold. You only need a broker when you want to buy or sell Hold the shares themselves (and are the cheapest, and your stock prices rise).

Online Trading Platform

Through the online account, you can automatically purchase or sell the stock (that is, most of the no human intervention). Once you place an order to buy or sell, you usually have a limited time to accept or lower the offered price.

How is the price made up?

The price includes the bid price and the selling price, the middle price is the actual price of the stock. Most stocks have one or more market makers set the price of the stock, so they can make money for the return of the stock market. For example, you may have a price of 136p stock, 1 34p and 138p offer. This means that the market maker will buy 134p of the stock and sell it to you 138p.

[1945900] Good, I want to put trade.

So in the above example, you agree to buy at 138p, trade through. Congratulations, you now have the shares of company X. If you pay the full offer price, it is also called "touch" the price. One thing to check is the normal size of the stock you want to buy. If you need more than NMS, then the marketer can choose a different price to the screen price.