Explanation of buying and selling orders in stocks and currencies and the advantages of using them and their types –

Explanation of buying and selling orders in stocks and currencies and the advantages of using them and their types –

Explanation of buying and selling orders in stocks and currenciesThe stock markets contribute to trading, increasing capital and ownership in the presence of a planned and safe environment, so it is an opportunity for capital owners to invest their money and get a share of the company’s profits, with the ability to conduct buying and selling of shares easily due to the availability of liquidity, however, market fluctuations Risks must be taken into account and the appropriate strategy for the trading platform should be studied. Below we provide an explanation of buy and sell orders in stocks and currencies.

Buy and sell orders in stocks and currencies

These concepts fall within the financial market, or within the trading process in which the buying and selling movement takes place. Also, the pending and future order joins that list, which is an application of the buying and selling process according to the price that is supposed to be and completely different from the current price. Also, trading in the stock market is different. Regarding trading in the currency market, forex, and what is called foreign currency exchange, we explain the concept of buying and selling orders in stocks and currencies as follows:

Explanation of buying and selling orders in stocks and currencies

  • The trading process for buying and selling takes place by paying the amount corresponding to the number written in the Ask field, while in the event of selling, a financial value similar to the number written in the Bid field is paid.
  • Also, the ask price indicates the minimum price acceptable to sellers for a particular security.
  • With regard to the term Bid price, it refers to the highest financial value spent by the person who wants to buy the share.
  • The difference lies in the difference between the bid and ask price, and the larger the difference, the more this leads to market activity.
  • Therefore, traders must generate information about immediate market orders, which cannot maintain a fixed price, but guarantee immediate execution of the order.
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Advantages of using buying and selling orders in stocks and currencies

The availability of accurate and sound information about the financial trading market would facilitate the process of making a decision to buy shares from it. Therefore, the strength of the company’s position in the market is a prominent factor that contributes to the success of the share purchase process. Below we learn about the most important advantages of using buying and selling orders in shares:

  • The possibility of completing buying and selling using the pending order, whether for stocks or assets.
  • It also allows the trader to buy and sell stocks and currencies at appropriate and reasonable prices.
  • Commissions in buy and sell orders are cheaper than limit orders
  • Market trading orders are easy to understand for beginners without any complexities and jargon.
  • Buying and selling orders are flexible with the ability to choose between several alternatives, in line with customers’ desires.
  • It is easy to control price and momentum, by relying on the type of order itself.
  • Trading orders provide distinct hedging tools that allow traders to use all types of stocks, thus achieving a high rate of profit and limiting dangerous market fluctuations.
  • While offering them, especially for beginners in the financial market, the freedom to try strategies surrounded by risks without any risk to their portfolio.

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Types of pending trading orders in stocks and currencies

Stock trading is a business that enhances the trader’s ability to achieve financial independence, as you need to employ mental abilities and planning skills that will achieve the desired success. We explain pending trading orders in stocks and currencies:

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Buy limit order

  • Provides enjoyment of the best price when purchasing
  • The buy order can only be placed below the market price.
  • Sometimes the trading platform is forced to place a buy limit order if its price exceeds the current market price.
  • Therefore, traders sought to purchase an asset at a price lower than the current market price.

Buy stop order

  • A buy stop order is issued if the trader wishes to buy shares that have exceeded a specific price.
  • The trader aspires to obtain a purchase order with a higher price than the current market price.

Sell ​​limit order

  • The person trading through it wants to sell faster than the current price in the financial market.
  • Therefore, people who trade resort to this type in the event that the current price in the financial markets does not suit them.

Sell ​​stop order

  • The sell order decision is executed but at a price that is less valuable than the current price in the financial markets.
  • Where this type includes short selling, and selling without covering.

stop loss order

  • This pending order is common in a stopped market or in the event of a buy or sell stop
  • It offers many benefits to people who trade, and it can be activated as a market order.
  • Also, the stop loss order remains inactive until a specified price is passed.
  • Also, limit orders and market orders are often active as soon as they are entered.

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When will the buy and sell orders be entered?

The market system relies on immediate buy and sell orders when there are the best possible prices. This system is good for investors who want to make purchases without any delay. We explain below when entering buy and sell orders:

  • In the beginning, the trader submits an order either to buy or sell directly through the market member or to use specialized channels on the Internet.
  • In the event that the application is completed, there is an automated job system that verifies the investor’s data and the availability of the required shares in the seller’s account in the event of a sale.
  • In the event that the orders reach his system with one of the members of the market, he works to follow up these orders, and he also works to coordinate them with the market situation, then he converts these orders into an electronic trading system.
  • In turn, this electronic trading system coordinates these orders according to the market price, and then enters these orders.
  • After the matching process is carried out, the trading system transfers it to the physical currency depository center, in order to complete the barter, purchase, sale and transfer of ownership.
  • The last step comes in transferring shares from selling accounts to buying accounts.
  • In the event that they are certificates, they must be placed in the investors’ accounts, but if they are in the form of financial currencies, they must be transferred through the Saudi system for the rapid transfer of materials.
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Trading times in the Saudi financial market

The Saudi market is among one of the largest and most famous markets in the Arab region and the world, and investors should know the times when the financial market opens and closes, with knowledge of holidays and official holidays and everything related to appointments. We mention the trading times in the Saudi financial market:

  • Stock trading starts at 10:00 am and continues until 3:00 pm.
  • As for the trading of sukuk and bonds, it starts from 10:00 am until 3:00 pm.
  • While index funds trading starts from 10:00 am and continues until 3:00 pm.
  • With the need to take into account the accuracy of time, as the market can open in a few seconds.

Explanation of buying and selling orders in stocks and currencies. The opportunity for profit exists as well as the opportunity for loss in the financial trading market. Therefore, the market must be studied with its fluctuations and risks so that the wind does not blow as ships do not desire.

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