Entering into the Stock Exchange

To be able to take part in a stock exchange market, it is absolutely necessary to use an intermediary. Only some business called “Service and Investments provider” are entitled to place your orders on the Stock Exchange.

The routing of orders is done according to the following principle:

Phase 1 : Specification of orders

The investor is the person who decides to buy or to sell stocks. In order to do that, he places an order with an intermediary. This order contains information about the name and the quantity of stocks to be bought or sold as well as the methods of purchase.

Thus, you can choose to buy at market prices at the time when the order arrives, or to fix a threshold, beyond which your order will be cancelled.

Then, your brokerage system records your request, checks it, and subsequently transmits it to the trading participant. Generally, the collectors of orders are banks or online brokers.