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How shares are traded

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Introduction

Context

The mechanics of trading shares are a vital part of an investor's education. Only by understanding what brokers do, how prices are quoted, how deals are executed, and how they are settled can you play the market to your best ability.

Prior knowledge required

None. The tutorial is designed for beginners.

Contents

  1. The role of brokers
  2. What type of broker do you want?
  3. Choosing a discretionary or advisory broker
  4. Choosing an execution-only broker
  5. Opening an account with a broker
  6. Placing buy/sell orders by telephone
  7. Placing buy/sell orders online
  8. Normal market size
  9. The spread
  10. Contract notes
  11. Settlement
  12. Conclusion

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