Trading

• Documents: Open Financial Instruments Account
• ECN - Electronic Communications Network
• US exchanges and trading platforms
• Market Maker list
• Fees: Trading

Stock trading in US

Stocks or shares represent a certain share of a company’s equity capital and the right to participate in the company’s profits. Return on investment for stocks depends on the dividend rate and market price changes of the stocks.

An investor trading in stocks can either buy stocks on the market (open „long” positions) or sell stocks he does not own (i.e. open „short” positions).

Currently, the majority of deals with stocks are transacted by means of electronic trading platforms and electronic communication systems (see the ECN – Electronic Communication Network section) thereby almost erasing the border between an individual investor and a market professional.

Depending on the type of access and functionality of a trading platform an investor may have access to 2 levels of quotations for a security at a given moment – Level 1 and Level 2 quotations.

The simplest access level is Level 1 Access, which in fact represents NBBO quotations (National Best Bid & Offer).

Level 2 Access displays quotations (as well as the quantity of stock offered at these quotations) that stand behind the NBBO quotations.