Original subtitles

Hey guys in this module we're going to be covering orders and order types.

So let me ask you this: What do you have to do when you want to buy or sell a stock?

Now we've already been through who

you got to contract which is your broker.

But what are you going to tell them and how do you tell them that?

So it's very simple.

You actually got to send them an order, tell them an order of what exactly you want him to do for you.

So back in the days you'd have sent then a letter, with time you could just give him a call.

But nowadays you can just go online and send your broker your order of what you want electronically.

Now even though the orders and what we put on them haven't changed over time the way we transmit them

has changed and we're going to cover that in a later module.

But today let's talk about what exactly do I need to put on my order.

I'm pretty sure all of you know that already but you're going to let your broker know

What is it that you want to buy?

What the stock that you want to buy or sell ?

So the first thing is the name of the company.

Now we're not actually going to give your broker the full name.

We're going to give him something that's called the ticker.

Now what is a ticker?

A ticker is just an abbreviation for the name of a company

So for example Microsoft's ticker is MSFT .

So if you want to buy Microsoft you can just tell your broker I want to buy

M S F T

Citigroup's ticker is just the letter C.

So whatever company you want to trade buy or sell you've got to know it's ticker. What is the second

thing you got to tell your broker?

Well the side of your order. What is the side?

Well basically is it a BUY order or is it a SELL order? Do i want to buy this stock or do i want to sell it?

So either a buy or a sell.

Now one other thing you've got to tell your broker is the type of order.

Now there's a wide variety of orders.

We're going to be covering the two basic orders today.

The most basic orders and we're going to cover some more advanced order types in later modules.

So in this module we're going to cover the two simplest orders the first one which is the market order the

simplest of all the second one is the limit order which is the second simplest type of order.

So your type of order could be a market order for now and

we're going to cover market and limit

So what's difference between the market and a a limit order? Very simple: a market order basically tells

your broker that you want to buy or sell that stock immediately no matter what price it's at.

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I just want to get my execution.

I want to get that stock. A limit order basically tells your broker I want to buy or sell that stock

at a limit price or better.

I do not want to get a worse price then the price

I'm telling you to get it at.

So when would you choose a limit order and when you choose a market order? Very simple: You choose a market order when

it's time sensitive

but it's not price sensitive.

So if you really want to get this stock right away and you don't care what price it is, send a MARKET order

so you get it.

Now if you care about price but you don't care about waiting for the stock to reach that price then you

send a LIMIT order because for example if you set a limit order to buy a stock at $10 but it's at

$11 you're not going to get it. You're only going to get it at $10 or better.

The problem with a limit order is if the stock never reaches that price and continues going up and never

reaches a price you're never going to get it.

And you might just miss the opportunity and missed that move.

So the problem with a market order is you might get the stock right away but you might get a bad price.

And if you would have been more patient you could have gotten a better price.

So you always got to know when to use which one.

And we're going to cover that in another module

But these are the two most basic orders.

Now if you give a market order you don't need to give your broker a price, but if you use a limit order,

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In this case only that you use a limit order you're going to have to give a price

to your order and you can say $10 or whatever price it is that you want to sell it at or buy at depending

if its a buy or sell order.

Now what else do you need to put on your order? The quantity.

So how many shares of that stock do you want to buy

or do you want to sell?

So quantity

is another thing that you need to put on your order, 100 shares, 200 shares, 300 shares

Let's say 200.

So these are really everything that you need to put on an order that you send to your broker.

Again nowadays very simple.

You you log in online.

You can put all of these in click send and your broker gets your orders right away.

So this is going to cover this module and I'll see you guys in the next one.