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Track 'n Trade Stocks High Finance

Placing Market Orders

Video Transcript

In this video, we want to demonstrate how to place a Market Order within the Historical Trade Simulator. A Market Order is an order sent to the market with no other instructions, other than to simply fill my order as soon as possible; at the current market bid, or ask price.

You can use a Buy Market Order if you want to enter the market or purchase stock; or you can have a Sell Market Order if you want to exit the market, or liquidate stock that you currently hold.

Of course, if you have a Margin Account, you can also use a Sell Market Order to enter the market with a short position. We will cover some of these advanced order placement techniques in other videos.

In this video, the first thing we need to do is we need to find a place that we want to enter the market. You'll notice that this Apple. Apple has been going through this nice little sideways channel and it has recently received a Buy signal, and had a large gap up.

Let's say that this is an indication that we want to go long Apple. So, if we just wanted to use a market order to enter Apple, what we would do is simply come into the trade simulator. Now, there are several ways we can do that. First, we can click the second tab, which brings us into the simulator. We can place an order here, Buy 1 Market. Now, let's buy more than 1, let's buy 100 shares of Apple, at the Market. Very simply, just by choosing Market, which is the default, and hitting Place the order. It's going to pop-up and tell us we do not have any money in our account. So, this is a way of Track 'n Trade letting us know that we need to make a deposit.

Once we make our deposit, we can come in here, let's say we're going to put $50,000.00 into our account. We have some additional rules down here that we can abide by, but I'm just going to turn those off. I'm going to say that we're working with the cash account, not a margin account. We're going to say Okay. This has given us the money necessary to place our order.

We're now going to go ahead and place the order again, let's hit Place. It places a marker on the screen, as you can see, to buy 100 At the Market. You'll see that the triangle is open, meaning that it has not yet been filled. It fills at the next price bar open, which is the next opportunity for the market to fill. So, we're going to step the market forward, and it fills our order, as you can see, it's now a red triangle. We are now long 100 shares of Apple at this price level.

To watch our prices increase and decrease, we need to look at the Accounting Package. As we slide this window open, you can see our Accounting Package in here, you can see the Account Activity where we deposited $50,000.00, where we purchased 100 shares of Apple.

As the market moves forward, as we step this market forward, you can see the value increase or decrease as the market moves, either in our favor, or against our position. We can see Open Orders, and we can see the Value at this point, here.

That's a Market Order within Track 'n Trade's Historical Trade Simulator.

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