Buying on the screen to understand the operation
What you will learn
Before a mock purchase, state: what the product is, how many units, in which currency and what the risk is.
A buy order is a request to execute a trade. Sending an order is not always the same as executing a trade.
In real trading you need a securities account with an appropriate service provider. Identify the product by its full name, symbol or security number, exchange and currency, and read its documents. For an ETF choose quantity and order type: Market asks execution at the available price and does not guarantee the last price we saw; Limit on a buy sets a maximum price, but the order may not execute. Before confirming check amount, balance, commissions and currency conversion. After sending, check execution status and quantity filled. A fund that is not traded continuously is bought according to the fund’s mechanism.
For the exercise only, 3 units at a price of 100 NIS cost 300 NIS before costs. A Limit buy order up to 100 NIS should not execute at 102 NIS; it may not execute at all. In our sandbox there is no Limit mechanism or order book — this is a simulated execution at that day’s displayed price.
Before a mock purchase, state: what the product is, how many units, in which currency and what the risk is.
Investor.gov · Types of Trading Orders ↗Check your understanding
A Limit buy order up to 100 NIS guarantees…
- Profit
- That the purchase will happen today
- A price ceiling for execution, but not execution
Answer and explanation
A price ceiling for execution, but not execution. The order limits the price, but there may be no execution under the set conditions.
After clicking send on an order in a real market…
- Check if and how much executed
- Assume everything was always bought
- Delete the order details
Answer and explanation
Check if and how much executed. An order can wait, be partially executed or be rejected. Check the actual confirmation.
Continue learning
Stock: a small piece of a company — A stock is a share of ownership in a company.
Why do prices change? — A market price is formed at the meeting point between buyers and sellers.
Risk: understanding what you can lose — Risk is the possibility that the outcome will be different from expected, including loss.