Trading Basics Discussion


#1

Welcome to this discussion thread. Feel free to ask questions or discuss things related to this section.


#2

I believe the following question is incorrect.
Question 1. What is a limit order? - An instruction to buy a security at or above a specified price.

Taken from sec.gov -

“A limit order is an order to buy or sell a stock at a specific price or better. A buy limit order can only be executed at the limit price or lower, and a sell limit order can only be executed at the limit price or higher. A limit order is not guaranteed to execute.”


#3

Great, thanks :slight_smile: I will correct.


#4

Same with the second question, i just made it right now, u switched the 2 answers.


#5

Order book quiz question 3:
How can you use the Orderbook as a trader?

1 To place orders on different price levels
2 To determine the closing price of a security
3 To see the current long term trend
4 To identify buying/selling pressure and determine support/resistance levels

It says coorect answer is the 4 but i would say its 1?


#6

Well, I wouldn’t say 1 is correct. But it might be a tricky question.

The order book is not used to place orders. It’s a visual representation of current orders, which you can use in your own analysis.


#7

Hello Filip, can you provide me the link were I can read about the short positioning.


#8

Sorry about that. Here is the link: https://www.investopedia.com/university/shortselling/shortselling1.asp

I have added it to the lecture now as well.