Everyone out there has thought of the luxurious life of billionaires. People like Bruce Wayne with his trusted butler Alfred are the goals of many if they struck it rich. After all, nothing says luxury than having someone to order what to do. But in the market world, “order” has a different meaning altogether.
Order in the market world is something that is used for the investor to his/her broker. And there is more than one type of orders available for an investor. Thus we made this list of every type of order available to understand for you.
What is an Order?
An order, is exactly as its name implies, is an order to broker and its firm to buy or sell a stock. All of which will be done on the investor’s behalf. You have the option of placing your orders through phone or online web trading platforms.
You should note that orders do fall into different types. The traders will have an opportunity to take more control of their orders by choosing the price and time on when their orders can be executed. The trader will then have full reign on whatever he decides to do with the security. You can either go fast or slow with your orders.
Investors need a broker. Regardless of experience, a trader needs to utilize trades through their broker to regulate proper ruling. Although the investor/trader has full reigns to decide what he wants to buy or sell. And the broker can only provide advice and oblige to his/her final decisions. Thus the investor will inform the broker with their list of instructions on how and where to proceed from there.
The exchange process then trades securities through a bid/ask process. Remember that to buy or sell a currency you must do the opposite at the same time. Meaning whenever you buy a currency, you must sell the other.
The highest possible price that has been declared will become the bid of the security. And the lowest price that’s been advertised will be considered the ask. Both the bid and the ask are constantly changing. The more orders are being taken, the more volatile the bid-ask prices are.