Find the best online stock trading brokers reviewed by Trading Pedia. Probably you have heard this phrase thousands of times – trading stocks. However, the whole concept of this phrase is a bit wrong simply because you don’t trade stocks like baseball cards, for example.
To trade means that you have to sell or buy – this is the jargon of all those financial markets that sooner or later you will dive into. Pretty often it is a mystery to people how a single system can handle the whole trading.
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In order to be a good trader you don’t have to know all the technical details of the stock markets, but it is really important to have some basic knowledge at least.
Basically there are 2 basic ways thanks to which you can start trading
On the exchange floor
Interesting tendency that occurred in the last couple of years was that more and more traders started switching their “platforms” and decided to go online. There are many markets, such as NASDAQ, which can be traded only electronically.
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As for the trading on the exchange floor – it looks pretty much the same as you have seen on TV. As soon as the market opens people start making telephone calls, rushing, shouting and so on.
Below we will post a short example on how to execute a simple trade, so that you will have an idea.
1. First you tell your broker to buy or sell the option you want at the market
2. Then the order department of his sends the order to the clerk
3. The floor clerk then alerts the firm traders who should find another trader who is willing to buy or sell the number of shares you have said. Actually this is easier than it sounds.
4. Then it is time for the two to agree on the price and therefore complete the price.
Of course, this is a simple example, and there are some more complex trades that you will master in time.
Here are brokers that you can use when it comes to stock trading;