You must have a very strong understanding of the basics if you’re a new comer to trading and investing because it is risky, fascinating and a crazy world you are heading into. Let us begin with the stock trading terms? Stock market utilizes terms or symbols because if the whole names of corporations were put to use, it might be really perplexing. It’s just made sweet and short. To give an example, HOG is the term which represents Harley Davidson in stock market trading.

Shares

Share is a slice of a company much like a slice of bread (can you imagine that). For a specific stock, the volume of shares available depends on quite a few factors of the business. You are also investing in a little tiny bit of that company once you purchase a share. That’s why it’s also known as a “share” of the company. The company are being shared by you with others.

Market price

Regardless if you are buying or selling, it is a price that a stock is going currently for. What that fish is selling for at markets straight away, they would be asked for the market of that fish. What you’re able quickly trade a stock for that is the market price.

Bid Price or Bid, and Ask or Ask Price

The bid is what people prefer to buy the stocks for, and the Ask ‘s what people are looking to sell their stocks for. The Ask is usually higher compare to the market price. Therefore, there are BID and ASK for the stock.

Limit Order

Limit order is where an order could well be placed by you for Ask or BID price. You should place in this order if you’d like to purchase or sell your stock for a certain price or don’t need to sell your stock at once (only buy or sell when A stock reaches A dollars).

Market Order

You need to sell your stock now. This is an order place in for market price. You’re not placing BID or Ask price.

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