Tips On Trading In NASDAQ
The NASDAQ though we know it as an exchange is not an exchange, and works like an automated mechanism where buyers and sellers can meet. The NYSE works on the system called double auctions where in the highest bidding buyer competes with other buyers and the lowest bidding seller bids against other sellers.NASDAQ though not very old has give tough competition to NYSE.The technology focus has helped NASDAQ some inherent strengths. Now for NASDAQ the auction method does not work, it is like a series of dealers which are selling stocks and each dealer has some sort of inventory of stocks as well as cash. Now NASDAQ is completely automated so going by above analogy you do not visit each dealer shop instead the computer system visits the store of each dealer and checks what prices and how much shares does each dealer have to satisfy an order. As an example I will show how a limit order works and how a market order works. Limit means that you impose a limit on the price you are willing to pay for the stock. In the market order you are willing to pay any price which is currently in the market. For example if you need to buy 1000 shares then the dealer will give 500 shares at a price you quoted but the next 500 shares you will get at a price which can be anything based on the price the dealer procures the additional shares for you. NASDAQ as you can see is the interdealer market represented by securities dealers and these dealers are called market makers. These dealers then compete with each other to post their best prices (both bid and ask). A normal non professional person can have access to this bid offers, ask size, size of each offer and they are called level II quotes. The system that provide the quotes is called Small Order Execution System. In conclusion, NASDAQ seems to favor the small investor like you and me for trading and that is all that matters in the stock trading arena.However there are other exchnages which can help really really small investor with special deals and cash only options like the American Exchange. If you need to trade in penny stocks then what you need is trading in OTCBB. But be careful as penny stock trading is very risky and volatile. If you absolutely abhor the idea of learning how the stock market works or for that matter you do not want to gain an understanding of the how the stock market works the your best bet is to take the advice of a broker who is employed at a full service brokerage firm.
About the Author
beginners guide stock market is important for knowledge of how does the stock market work
Previous Article - Next Article
Add Your Picture
Article Submitted By:
JohnBorder
Subscribe To: JohnBorder Rss Feed
This Article Has Been Read 35 Times
Publish/Share this article
Remember: The article body, title, author bio and links may not be changed or removed. By publishing this article, you agree to all the terms in our Terms of Service.
Rating: Not yet rated
More articles in this Category
How to select your stock broker
Can a forex diary complement the trading system?
Futures Trading: What To Do
A Basic Introduction to Trading
The Keltner Channel and Bollinger Bands
Traits Of Successful Forex Traders
Know About Option Pricing Formulas
ES Emini Day Trading: The Perfect Day Job
Introduction to Using ETF Trading Strategies to Increase Your ROI
CFDs Futures Trading
Why Setting Trading And Investing Goals Can Improve Performance
Have You Learnt The Unknown Facts About Trading For A Living
Trade Futures with CFDs
Why Trade Futures and Options
Some Helpful Tips on Day Trading For a Living
How Option Trading Profit In Any Market Conditions
The Biggest Threat to Your Own Investment Success Could be Yourself
Secrets Of Technical Analysis In The Stock Market Trading
Is A Forex Trading Course Really Necessary?
Novice to Pro : Journey on the Forex Learning Curve
Trade Commodities with Financial Spread Betting Broker
Financial Spread Betting and Forex
Advantages of CFD Trading
Getting Started with a Forex Trading System Course
Exit Strategies In Trading Systems
Swing trading is the best trading option!
Trading Online Based On The Relative Strength Index
Forex Day Trading With The Forex Trading Machine
How Many Markets Should You Trade?

