| Beginners Guide To Trading Online
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| | most part ). Once you place an order to
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| So You Want To Buy Or Trade Shares?
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| | buy or sell, you normally have a limited
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| The first thing you need to do if you are
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| | amount of time to accept or turn down the
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| online, is check out online brokers such
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| | price offered.
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| as TD Waterhouse or E-Trade. Opening an
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| | How Are Prices Made Up?
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| account is normally free, and once it is
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| | Prices consist of a bid and offer, with
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| opened you can deposit money into your
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| | the Mid price being the actual price of
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| account so that you can trade.
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| | the share. Most stocks have one or more
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| What Type Of Broker?
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| | marketmakers that set the price for the
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| The cheapest is an execution only broker.
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| | stock so they can make money on the
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| What this basically means is that you
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| | spread in return for making a market in
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| aren't given any advice on when to buy or
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| | that stock. For instance, you may have a
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| sell the shares/trade. Their job is to
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| | stock priced at 136p with a 134p bid and
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| provide a quote and fill the order.
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| | 138p offer. This means the marketmaker
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| What Is An Order?
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| | will buy the stock off you for 134p and
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| All participants in the market want to do
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| | sell it to you for 138p.
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| one of three things. They either want to
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| | Okay I Want To Place The Trade.
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| buy, sell or hold. You only need a broker
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| | So in the example above you agree to buy
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| when you want to buy or sell. Holding the
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| | at 138p and the deal goes through.
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| shares takes care of itself ( and is the
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| | Congratulations you now own shares in
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| least expensive while your stocks are
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| | Company 'X'. If you pay the full offer
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| going up in price ).
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| | price, it is also known as the 'touch'
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| Online Trading Platforms
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| | price. One thing to check is the normal
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| By having an account online, it allows
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| | market size for the shares you wish to
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| you to buy or sell shares automatically (
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| | buy.
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| i.e. without human intervention in the
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