As we’ve said before, buying or selling stocks isn’t as easy as calling your broker or clicking the “buy” button in your web browser. There’s a lot more to it.
Simply picking the right kind of trading order can significantly change how much you pay for your security. Ask anybody who has accidentally chosen a market order during a volatile trading day how they feel about that decision. But even selecting the right kind of trading order isn’t the only pitfall investors face when buying or selling a stock.
It turns out that other forces at work can end up costing you hefty dollars if you’re not careful. But luckily, there are ways to avoid the so-called market-maker problem and save you some big-time bucks when you buy or sell shares.
Want to learn more about why trading orders matter? Click here.
Market Maker Who?
The idea of the stock market is simple. Buyers and sellers meet to exchange securities in real time. But really it isn’t so simple. There are plenty of behind-the-scenes things going on – and one of them happens to be the world of market makers.