Some simple noobie questions about online investing.

[Eihli]

I just opened and funded an account at zecco.com.

I want to buy shares of PYGMF.

To make an order it asks for:
Stock Symple [PYGMF]
Transaction [Buy, Sell, Short, Cover]
Quantity [xxxx]
Order Type [Market, Limit, Stop, Stop Limit, VTSO] (Question 1. What does Order Type mean and what does each option mean?)
Limit Price [Only available for Limit orders]
Duration [Day, GTC] (Question 2. What do each of these options mean?)
Preferred ECN [Auto] (Question 3. What does this mean and why is Auto my only option?)
AON [] <- checkbox (Question 4. What is this for?)




Ok, that's part 1. Thanks for any help.

Now, I tried to buy 300 shares of PYGMF and after about an hour the transaction came up as declined.

I call and ask why and they say that since it's traded on an overseas stock exchange they have to take the order over the phone and charge a $20 commission. I say that's fine, in that case give me 1200 shares. I think he says something along the lines of "There are no bids or asks (Question 5. What does that mean?) so, how much would you like to pay per share." I remember seeing market price was .80 so I tell him .80. He asks me whether I want the trade to be for the day or GTC. I don't know what GTC means so I assume day. I get a call at about 3:30 and they say the trade didn't go through (I'm guessing nobody accepted my offer of .80/share for 1200 shares?) (Question 6: Do they still charge commission on a trade that didn't go through?)


Question 7: Is there a better way to learn than just jumping in and doing and asking someone who knows more than you when you come across something unfamiliar?


All help much appreciated. [img]/images/graemlins/smile.gif[/img]

[hlacheen]

GTC = good until canceled I believe.

[Grizwold]

1. Order Types:
Market: Buy at the current market price.
Stops and Limits: There are 2 types of stop/limit orders. Stop buy - buy the stock once it rises to specified price. Limit buy - buy the stock once it drops to specified price. Stop sell (aka, stop loss) - sell once stock drops to specified price. Limit sell - sell once stock rises to specified price. Stop limit is a combination of the two. For example, let's say a stock price is $10 and you already own some shares. You set a stop limit sell for $5. When the stock price drops to $5, you will sell the stock for $5, but no less. If you were to just set a simple stop sell order, your sell order may be executed at $5 or less. VTSO, idk what that is. Simply, it is an order that starts as a stop order, then turns into a limit order once your specified price is reached.

2. Duration
Day Order - if your order is not executed that day, it is canceled.
GTC (Good 'Til Cancel) - your order will be executed any day until you cancel it.

3. ECN - is like a the server for electronic trades. Not all traders have access to other traders selling/buying stocks electronically. IDK why they call it auto on zecco.

4. AON - idk what that is either.

5. Bids and Asks - Ask price is the price which the dealer is willing to sell you the stock at. It's the price you buy the stock for. Bid is the price the dealer is willing to buy your stock for. For example, since the stock you are trying to buy is currently .80, a typical ask price would be .85 and bid price would be .75. This is probably why your order was not executed.

6. IDK about all brokerages, but the ones I know about do not charge commision if your order is not executed.

7. Google search.

[Sniper]

[ QUOTE ]
3. ECN - is like a the server for electronic trades. Not all traders have access to other traders selling/buying stocks electronically. IDK why they call it auto on zecco.

4. AON - idk what that is either.

[/ QUOTE ]

ECN - Auto, means that he can't select a particular ECN to direct the order to go thru. Presumably, the best ECN will be AUTOmatically selected for him.

AON = All or None. If you put in an order for 1,200 shares and select this, your order will only fill if someone is willing to take the other side of the full 1,200 share order. If you don't select AON, then you could get partial fills, of for example 100 shares.

btw, PYGMF trades on the Pink Sheets... and you will have a very hard time getting a no-cost broker like Zecco to handle this order properly.

[Eihli]

[ QUOTE ]


btw, PYGMF trades on the Pink Sheets... and you will have a very hard time getting a no-cost broker like Zecco to handle this order properly.


[/ QUOTE ]

Interesting, that answers the question about PYGMF.P I've seen a few places.

[pig4bill]

You really should surf all the help on the brokerage site. All of these questions are probably answered there.