The two most popular and easiest ways to buy/sell a stock or ETF through an online broker is with a market order or limit order.
For every trade to happen, there needs to be a buyer and a seller at an agreed upon price. It’s the basic premise of how the stock market works. Of course, how that happens will depend on the different order types you use.
For the average investor out there, when it comes down to market order vs. limit order, one offers more advantages than the other.
Supply and Demand
Each stock trades differently based on the number of shares available (supply) and the demand for those shares. Big blue chip stocks tend to have a large amount of available shares, high daily trading volumes, and lower price fluctuations between trades. Continue Reading…