Entering into the Stock Exchange

Phase 2 : Execution of the orders

The trading participants are person entitled to carry out the transaction. This person follows the directives indicated in the methods of the order established in the preceding phase.

In order for exchanges to be simplified, independent sellers enter in competition to carry out the orders placed through the investors. They post the rate of various stocks which they sell and those that they wish to buy.

These sellers are haled to propose constantly an amount of stocks to be sold or bought. In exchange, they take advantage from a commission on the difference between sale and purchase prices. This difference is called the “spread”.

Sheme Bid and Ask

For example, you wish to buy a “Google” stock on the market. You will pay $ 100 for it. However, if at the same moment, you want to sell your stock, one will offer $ 99 of them to you. The difference between the price to which one sells the stock and another buy it is $ 1.

Stocks software

Iniated people are using software like this one, in order to, buy and sell stocks.

In the case of the NYSE, these salesmen are called the “Specialist”, and in the NASDAQ’s case, one will speak of “market maker”.