Choose a broker

A broker is an individual or firm that buys and sells securities on behalf of clients. Brokers can be classified as full-service or discount.

Create an account with your preferred Broker

When you open an account, you’ll also need to decide how you want to pay for your trades. The two options are cash and margin.

Execution of Order

A market order is an order to purchase or sell securities at the best available price. A limit order is a purchase or sale of a security at a certain price or better.

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Holding the trade

The length of time depends on the type of order and the market conditions.

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Monitor your trade

Once the trade begins, you’ll need to monitor it to ensure that the stock price moves in the direction you want it to.

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Pay a commission

When you buy stock, you’ll pay what’s called a commission. This is a fee charged by the broker for executing the trade.

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