Understanding How To Trading Stocks
Stock transaction is simple, like the traders to trade in traditional markets.
How do I trade stocks?
Stock transaction is simple, like the traders to trade in traditional markets. When buying clothes or vegetables in the market, prices reached an agreement based on the results of the seller and the buyer. In traditional markets, in addition to no merchant or seller, there foreman market take care of the market and of course the location of the buyer.
Similarly, the share of transactions on the trading floor. we know brokers, exchanges and investors. Investors (buyers) do sell or buy shares through a broker through the system on a stock exchange.
With investors who transact?
If in traditional markets, buyers purchase goods from merchants, another case with stock transactions on the exchange. Indeed, investors trade shares with other investors. Investors could be an individual or institutional investors.
Transaction mechanism similar to when we are looking for a house (property) via an agent. If we want to buy a home, the first step is to contact the property agent to do the order with the order type / specification is sought and the range of the purchase price.
Then the broker looking for a list of homes for sale or looking to fellow real estate agent to fulfill the order. Goods sold are items from other investors. Of course, other investors are already giving orders in advance.
The same also applies when transaction stock. Investors who want to buy shares, shall enter an order in advance through a broker, and his order was sought by investors sell orders through a system.
Where is the location of stock transactions?
Actually there are location-stock transaction. But that was then. That’s where the order meet resulting transaction (done). In the early days of trade exchanges, the order written on the board and when there are met or done noted.
Do we need to go to the venue to transact?
Along with the development of technology, the order in input to server and each broker sent people to enter orders in the terminals. Due to the development of telecommunications and information technology, it is now the order can be sent directly from the server to the broker’s office on the stock exchange trading via remote technology.
What is the difference with the remote trading online trading?
Remote trading is different from trading online. Transaction facilitate remote trading of brokers to the server on the stock exchange. Transactions between brokers done through the exchange system. While online trading broker system which is used by investors to enter order them.
So any customer can enter an order to sell or buy them through the online trading system to the broker server, and orders are passed to the remote system via the stock exchange trading.
How to start a transaction?
To start the transaction, the customer must choose a broker first. This is the same as when we want to save money or deposits in the bank. We must choose a bank first, come there to fill out a form and when it is approved saving us, then we can deal, either to save or withdraw savings.
The same thing happens when I want to start investing in the stock exchange. After selecting a broker, we fill in the account opening form brokerage office (sometimes form can be delivered and picked up). Then open a securities account, we must deposit the initial deposit to be a capital transaction. After that then we can do a securities transaction.