Learn to Trade

Trade Orders Explained

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Trade Execution in the Financial Markets A bit about how trading works.   Trading is best described as an auction market.  On one side there are buyers who are bidding to purchase a security like Amazon or a cryptocurrency like Bitcoin.   On the other side are sellers who are asking for a price to sell a stock like Amazon or a cryptocurrency like Bitcoin.  These are commonly referred to as the Bid and Ask or Bid and Offers for a given market.  The best way to visualize this is to stack them up in two columns one side is the buy-side and the other is the sell-side with the trading prices in the middle.  Those bid and offers also show how much volume I behind those prices. Basic Order Types 1. Market Order A market order is a trade order to purchase or sell a stock at the current market price. A key component of a market order is that the individual does not control the amount paid for the stock purchase or sale. The price is set by the market at the time the order is executed. When you are buying with a market order you will be matched with […]