NooB Questions

[reef]

OK, so I dont invest yet. I have been playing with the ThinkorSwim platform buying and selling but its confusing.

If stock A is @ 2.50 and has a bid/ask of 2.75/3.10 what am I able to purchase it at? The ThinkorSwim lets me buy at the bid price and the market price. This doesnt make sense to me. Would it be correct to ASSume that in reality I would only be able to the ask price?

[Albert0373]

Yes, if you put in an open market order with no limit, you will get your shares at the ask price or higher; that's why it is wise to always put in a limit order when ever you are making a trade unless you are trying to get in/out quick and will disregard a small loss. Simulations are only for general practice as they don't work around bid/asking prices.

[1birdman1]

OK, so I dont invest yet. I have been playing with the ThinkorSwim platform buying and selling but its confusing.

If stock A is @ 2.50 and has a bid/ask of 2.75/3.10 what am I able to purchase it at? The ThinkorSwim lets me buy at the bid price and the market price. This doesnt make sense to me. Would it be correct to ASSume that in reality I would only be able to the ask price?

if you haven't started yet... then a great place to start is www.sogoinvest I love it b/c it is cheap. I have a total of $2,000 invested so commison is a big deal to me and they only charge $1 for the first 90 days and $3 after that. like sharebuilder but cheaper and free real time quotes

[reef]

Ok, ok, so let's say I put in an order to buy at the bid price (of my example) and it pops up 2 hours later, there is no garantee my order gets filled right if it went up .25 above my order, right?

Thanks for the input. :D

[Albert0373]

Correction:

Ok, ok, so let's say I put in an limit order to buy at the bid price (of my example) and it pops up 2 hours later, there is no garantee my order gets filled right if it went up .25 above my order, right?

Thanks for the input. :D

Then yes, that is correct. It went above your limit price, thus it won't execute.