December 8, 2011
Stock market trading beginner 2 very stupid questions?Please help?
kalns asked:
I start online trading on online virtual simulation platform to practice options trading. But there is a “20-min” delay which keeps annoying me.
My questions:
1. So that means i am not trading at the price when i click the “confirm” button? E.g. I want to buy apple.inc at $100 at 10am so i click “confirm”, but the trade is delayed to 10.20am when apple inc has soared to $200, so i am trading at $200 which is way more expensive to me??????????
2. What does the word “position” means? I buy a share so i have 1 position???I sell that share so i lost that position????
I start online trading on online virtual simulation platform to practice options trading. But there is a “20-min” delay which keeps annoying me.
My questions:
1. So that means i am not trading at the price when i click the “confirm” button? E.g. I want to buy apple.inc at $100 at 10am so i click “confirm”, but the trade is delayed to 10.20am when apple inc has soared to $200, so i am trading at $200 which is way more expensive to me??????????
2. What does the word “position” means? I buy a share so i have 1 position???I sell that share so i lost that position????
Thank you so much and forgive me asking such stupid questions.
Filed under Investing by Administrator
Comments on Stock market trading beginner 2 very stupid questions?Please help? »
A stock like Apple has many shares available and many investors selling and buying each day, so whether your a seller or buyer, there is likely enough stock to buy and likely a buyer to sell to. The delay could be your broker, the time it takes to fill your order, or the fact your using a virtual trading program. It sounds like your purchasing your stock using whats called market value, and it is purchased at whatever the market value is for that certain stock at the time it is filled. A suggestion would be to look into limit orders. You set the price you want to pay, or sell and it places the order when that is met. You should have this option available. Simply enter the price you want to pay for the stock and it wont send the order out until that price is available.
The 20 minute delay means that the quotes are from 20 minutes or less ago. You still bought or sold at whatever price you selected as a limit price. It should not really matter in a simulated account since you are practicing execution plus exiting on your targets or stop losses. The 20 minute delay is to give the real time bandwidth to the clients trading real money.
Position means how many shares or contracts you are long or short. If you close any positions, you will have zero shares for that stock.