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Online brokers slightly differ with their trading platforms however the order types are universal. When purchasing penny stocks you should always use limit orders.
Bid/Ask - The highest price a trader is willing to pay for a stock, known as the bid, is the best possible price you can achieve selling stock at that moment. The lowest price a trader is willing to sell, known as the ask, is the best possible price you can purchase the stock for at that moment.
Limit Order - A limit order enables the trader to enter the share quantity and most importantly the execution price. Due to the often wide spread between a penny stock's bid and ask price, it's important to place limit orders.
Market Order - Used for immediate price execution, specifying only the quantity of shares to be traded. Market orders generally execute within seconds.
Stop Loss - Applied for risk managment, order will execute once the price is struck in order to limit your loss.
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Section I - Stock Market Overview
Sections III & IV - Fundamental and Technical Analysis
Section V - Diversification
Section VI - Federal Reserve Bank
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