Step 6: Deciding upon the price and order type

Basically these 2 things are closely connected: determining the price you choose the order type and vice versa. There are 2 main order types available in Investment Game:

• Market Order – placing such order means that you agree on the market price, and you order will be executed at the next market price on the stock exchange. This is the fastest way to make a trade without bothering about the price. Moreover, market order has the smallest bid-ask spread, which is useful for keeping tight money management.



• Limit order – this order restricts the prices at which you want to sell/sell short or buy/buy to cover. Limit orders are frequently used when the prices are relatively volatile and a trader wants to secure himself from overpaying due to sudden price plummet. Setting the fixed max min prices, you should bear in mind current bid and ask prices for the stock. “Bid” – is the price at which you are able to sell the stock, whereas “Ask” – is the price at which you can buy the latter. Remember, the bigger the difference between the current bid-ask and your pre-set prices – the longer it’ll take for the order to be executed, because the market will wait until your and market prices will coincide. Another point to consider, you cannot set max and min prices in Investment Game simultaneously: use MIN price for selling/selling short and MAX price for buying/buying to cover!

If all these steps were carefully examined – do not hesitate to start playing Investment Game. The money you are playing with here is virtual – don’t be afraid to try different strategies! Good luck!