By Monica Mo
In the past, there were many people who put their stocks in the hands of professional brokers or traders. Now with the upgrade and improvement of internet, people can do their trading electronically, effectively and efficiently. As long as you sign up for a brokerage account, you can start to purchase and sell stock immediately.
The Stock Symbol
Every company has its own exclusive symbol which is a must have item in the purchasing process. For instance, WMT is short for Walmart, TGT for Target and F for Ford. These symbols can be checked out through Google or yahoo to ensure that you do not end up purchasing the wrong stock.
Stop Order
A stop order refers to the amount you would set your stock. For instance, suppose that Walmart is now trading at 28 dollars and it is rising for any good reason, and you would not place an order to the stock until it reaches 30 dollars to ensure that it is actually rising. Your brokerage account would automatically wait for the stock price to reach 30 dollars and then turn into a market order as soon as you place a Buy Stop Order of 30 dollars.
Limit Order
You can set both the minimum and maximum prices you would buy and sell at with a Limit order. For instance, when you place a Buy Limit Order on WMT for 30 dollars and the stock is now trading at 27 dollars, then the brokerage service would automatically fill your order up when it hits the 30 dollars.
Monica is a freelance writer who has written thousands of articles on various niches. She likes to share her knowledge with her readers and provide them with the best information on various topics. She also likes to write about replica watch Article Source: http://EzineArticles.com/?expert=Monica_Mo |
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