LESSON 05 ~11 MIN · AT YOUR OWN PACE

How does a trade work?

Brokers, Buy/Sell, Bid/Ask, Orders and trading costs.

CHECK YOUR UNDERSTANDING

Do you remember what you read?

Four practice questions. Turn on JavaScript for the interactive quiz.

Bid is 99.80 and Ask is 100.00. How big is the Spread?
- 0.20
- 1.20
- 100
What does a Buy Limit at 98 not guarantee?
- An execution price of 98 or lower, if it is filled
- That the order will be filled
- A price limit
Is the exact price of a Market Order certain?
- Yes
- Yes, if the chart is green
- No
A gross gain of 20 and fees of 6. What is left before tax?
- 26
- 14
- 20

Sources and further reading

Sources in English · Content reviewed on 28 September 2026. We made the examples for learning; they are not broker recommendations.