| In order to carry out online stock trading, you need | | | | An All or None (AON) order is what you would use if |
| to make sure that you choose a good broker, | | | | you were interested in a stock, only if you can get a |
| preferably one that has got good tools to help you | | | | specific number of shares. In other words, if you |
| with your technical analysis so that you are not just | | | | want a block of 100 shares in "X" company and you |
| relying on his stock tips alone. You will have heard | | | | issue an AON, your broker will only buy if he can get |
| many terminologies used and the jargon can be very | | | | that exact amount. If he cannot, he will not buy any |
| confusing. With a little bit or research, you can have | | | | shares at all. The order can remain until such time |
| yourself fully understanding all of these concepts. | | | | that the entire block can be moved. It is useful when |
| There are many types of trades that you can tell | | | | you are looking to sell or buy shares at one price in |
| your broker to place for you. Each one will be suited | | | | one go, or if you are selling covered calls. A Fill or Kill |
| for different scenarios. You need to learn when to | | | | order must be filled completely on first attempt or |
| use them and understand what they mean. | | | | cancelled completely. |
| If you want to buy a number of shares in company | | | | A stop order works by automatically selling or buying |
| X at any given price, you will place what is called a | | | | a stock when it passes or falls below a specific |
| market order. Your broker will execute your buy or | | | | stated price. As soon as the stop price is reached, a |
| sell order immediately and pick up the shares for you | | | | market order is given and the stock will be sold or |
| at whatever is the current market price. In some | | | | bought at whatever the current going market price |
| cases, you may only be prepared to pay a particular | | | | is. If the market is moving fast, it is possible that the |
| price for a stock and nothing more, or you may only | | | | exact stop price may be passed. Online stock trading |
| be willing to sell it a specific price and nothing less. If | | | | can be made a lot simpler if you take the time to |
| this is the case, you would place a limit order. | | | | teach yourself about the different orders and how |
| However, the order may never get executed if the | | | | they work on the stock market. |
| price moves away from what you want. | | | | |