Online Share Trading - Options ?

[Dolby]

If I'm buying shares, I get the option :

At Market
Limit Price (value)

Also this

Life of Trade (Good for) - day (4 June 2014) and month (4 July 2014)

 

[bchip]

Lets say you want to buy 100 shares of Naspers (NPN), the orders available are
30 - 1000
40 - 1010
90 - 1020

@Market will fill the order with whatever is available, Limit Price will limit it to that price, eg
100 shares will be filled with 30 @ 1000, 40 @ 1010 and 30 @ 1020

if you entered limit price 950, nothing would be filled cause no-one was selling it at that time at that price.
if you entered limit price 1010, then 30 @ 1000, 40 @ 1010 and finally the last 30 would be waiting for someone still

 

[bchip]

Life of trade refers to is the order only for today, or should the order be there for the whole month?

 

[Dolby]

Thank you!

http://beginnersinvest.about.com/od/investing101/ss/stocktrading_3.htm

A limit order lets you set a minimum or maximum price before your stock trade gets converted to a market order and sent to the stock exchange. Until you become very experienced, almost all orders should be limit orders to protect yourself.

Why would they recommend this ?

 

[bchip]

Limit orders are there for traders, not really investors.
They also help a person when the liquidity is low. By liquidity I mean there arent a lot of bids or offers.

EG If you wanted to a small cap share and the only offers were R1, R4 and R10 and you went @market
you would move that share price nearly 1000% (buying @ R1 up to R 10)

If you were buying any share in the Top 100, so all your bigger companies, bluechips, etc
you do not need to worry about this. I just go @market because theres enough people buying and selling within a few cents
that I dont need to worry. Only if you go into shares like penny stocks would you limit the price.
As an investor I often find its not worth it trying to save a few cents, easier just to go @market.


Pleasure, glad I could help.

 

[noob_saibot]

Thank you!

http://beginnersinvest.about.com/od/investing101/ss/stocktrading_3.htm

A limit order lets you set a minimum or maximum price before your stock trade gets converted to a market order and sent to the stock exchange. Until you become very experienced, almost all orders should be limit orders to protect yourself.

Why would they recommend this ?

It's part of risk management. If you've ever traded in currencies, you would use these low- and high-level limits to cash out either to avoid substantial losses or to realize your gain (by selling and recouping the profits).

The same principle would apply to most types of trading (trading in terms of daily, weekly or monthly).

If you are a long-term investor, you would increase your limits to a wider margin, so as to avoid small swings, whilst still maintaining a "risk management" option.

I do somewhat agree with bchip, but I would use these tools whether you are a trader or an investor (especially by placing lower limits).

 

[brucem]

It's part of risk management. If you've ever traded in currencies, you would use these low- and high-level limits to cash out either to avoid substantial losses or to realize your gain (by selling and recouping the profits).

The same principle would apply to most types of trading (trading in terms of daily, weekly or monthly).

If you are a long-term investor, you would increase your limits to a wider margin, so as to avoid small swings, whilst still maintaining a "risk management" option.

I do somewhat agree with bchip, but I would use these tools whether you are a trader or an investor (especially by placing lower limits).

Nope, your describing stop loss and take profits levels, limit orders are a different thing

 

[noob_saibot]

Nope, your describing stop loss and take profits levels, limit orders are a different thing

Oh, my bad!!!

Well I guess the OP could heed my 'advice' in any case.

Edit:

I actually went back to that link provided by the OP to review my knowledge and the limit order acts similar to the stop loss/profit take in that when the price reaches a certain level, a buy/sell is executed.

Perhaps the stop loss/profit take can be considered the selling-side of a limit order.

 

[Lukcydog]

I'm a long-term investor and I only use limit price, I burnt my fingers once (ie lack of knowledge I might add) with the Market Price option.

 

[jassielarry]

Doing online share trading with the help of some best share trading service providing company will leads to gain money....

 

[iamgigglz]

I've been doing pretty well with ADS Securities, trading eur/usd. Easy to get started and their trading platform software is easy to use.

I was trading commodities with eToro for a while but their fees started getting silly.

I know very, very little about trading but I'm enjoying it. I'm trading on 15m and permanently keep it open on a second screen :erm: