How to trade by value
Trade by Value is an order type where you can set the value of the total purchase.
Set the amount you want to spend for the total of the trade. It will calculate the amount of shares, by dividing the value available by the limit or market price.
Set the amount you want to spend for the total of the trade or the value of the trade.
It will calculate the amount of shares, by dividing the value available by the limit or market price.
Order Type
You can choose between:
- Limit Order, Limit orders set the maximum or minimum price at which you’re willing to complete the transaction, whether it be a buy or sell.
- Market to Limit Order; Market orders are transactions meant to be executed as quickly as possible at the current market price, and if there is any remaining volume, it is placed in the market as a limit order.
Limit Order
When the Limit order is selected it will calculate the number of units by;
Value amount / Limit Price = Units
Market to Limit Order
When the Market to Limit order is selected it will calculate the number of units by;
Value amount / Last Price = Units
Order Summary
The summary will display the estimated value of the trade.
- It will factor in the Order Amount
- (trade value) and the Estimated Fees
- (brokerage) to the combined Total Cost.
Bottom Line
Trade By Value trades are an easy way to figure out how many shares you will be able to purchase by setting a value that you want to spend. It is especially good for ETF’s where you buy smaller amounts, sub $500, by choosing the value and setting it as a Market to Limit order.
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To learn how to place a Buy order, check out the video
Read More
You can download the offline guide here Trade By Value Guide
What you learn here has been used in our Trade for Good software.
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