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Showing posts with the label The Basics of Order Types.

The Basics of Trading a Stock: Know Your Orders

The Basics of Trading a Stock: Know Your Orders With the proliferation of digital technology and the internet, many investors are opting to   buy   and sell stocks for themselves online instead of paying advisors large commissions to execute trades. However, before you can start   buying   and selling stocks, it's important to understand the different types of   orders   and when they are appropriate. In this article, we'll cover the basic types of stock orders and how they complement your investing style. KEY TAKEAWAYS Depending on your investing style, different types of orders can be used to trade stocks more effectively. A market order simply buys (or sells) shares at the prevailing market prices until the order is filled. A limit order specifies a certain price at which the order must be filled, although there is no guarantee that some or all of the order will trade if the limit is set too high or low. Stop orders, a type of market order, are triggered when a stock moves a