You've stabilized your personal finances and planned out your investments.
You know what you want to buy, and why you want to buy it.
You've figured out how many shares you want to purchase (using position sizing).
You're ready to put your money where you mouth is (so to speak).
It's time to trade; trade that hard earned money for shares of your selected investment.
Or like this...
Even after you've figured out all the hard stuff, you still have a lot of choices to make.
How do you want to buy the shares? Do you want to enter a market order? Or a limit order? How about a stop order? Maybe a stop limit? How long do you want the order to be "open"? Only for today? Or do you want it to remain active until you say so? Any special instructions?
Knowing "what" to buy is over. Now you'll learn "how" to buy shares on the open market.
Safe Investing Tip:
Buying shares of a mutual fund is more straightforward, because mutual funds are only bought and sold at the end of a trading day. The closing price is the price you get, period.
Market orders are submitted "as is", meaning that you get whatever price is assigned when you order is submitted. When you place a market order, you to buy or sell shares immediately, which is the next available price. As soon as the order is processes, it is going to be filled (as long as people are trading your investment).
Limit orders put a price restriction on the order, meaning that the price you pay must be equal or better than the price you specify with the order. When you place a limit order, you are specifying the highest price you are willing to pay or the lowest price you are willing to sell. Your order will be executed at your requested price or better if possible.
Stop orders are the most stringent orders. they only become orders after a price has moved past the threshold you specify.
Fill or Kill (FOK) - A "Fill or Kill" order means that you want to buy shares IMMEDIATELY. If the order cannot be filled immediately, in its entirety, it is automatically canceled.