How to Trade in Stocks Online

Trading in stocks online is not like shopping at your local major retailer, where prices are set. Because investments are priced in real time through active bidding between buyers and sellers, there are techniques to buying and selling. When dealing with investments, you have five main ways to buy or sell them online:

• Market orders: This is the most common type of order. You tell your broker to sell your shares at the best price or to buy shares at the current price. Because these orders are executed almost immediately and are straightforward, they typically have the lowest commissions.