Brokerage Basics 201: What Actually Happens When You Tap “Buy”
TL;DR
Quick Summary
- Pressing “buy” creates an order; a trade only exists after the order is matched and filled.
- Brokers route orders to different venues; routing choices can affect execution details.
- Fills can be full, partial, or absent depending on liquidity and order type.
- Trade date and settlement date are different; many U.S. equity trades moved to T+1 in 2024, so cash may be unsettled for a short time.
- A brief pre-trade checklist helps set expectations about availability and execution outcomes.
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Disclaimer: This article is for educational and informational purposes only and does not constitute investment, financial, legal, or tax advice. KAHROS is a financial media and technology company, and the Services, including any AI-generated content and articles, are provided for general information only. We are not a registered broker-dealer or investment advisor. Concepts discussed may not apply to your individual situation. You should consider your objectives and circumstances and consult a qualified professional before making any financial decisions. Please refer to our Terms of Service for more details.
Disclaimer: This article is for educational and informational purposes only and does not constitute investment, financial, legal, or tax advice. KAHROS is a financial media and technology company, and the Services, including any AI-generated content and articles, are provided for general information only. We are not a registered broker-dealer or investment advisor. Concepts discussed may not apply to your individual situation. You should consider your objectives and circumstances and consult a qualified professional before making any financial decisions. Please refer to our Terms of Service for more details.
