On the exchange, buyers and sellers come together. Supply and demand determine the price. The bid price is the price at which the ‘best buyer’ (the one with the highest bid) wants to buy at that moment. The ask price is the price at which the ‘best seller’ wants to sell at that moment, so the lowest selling price.
"}},{"componentType":"sectionTitle","title":"The order book gives insight into the market"},{"componentType":"paragraph","richBody":{"value":"Do you enter a buy or sell order in My ING or in the ING App? Then you will see the exchange’s order book, including the current bid and ask prices. You also see the size of the orders in numbers of shares, bonds, units, and so on. This is the volume. This information gives you insight into how the market is doing. Use the order book when choosing your buy or sell order. At ING, you can choose from four different order types.
"}},{"componentType":"accordion","accordionList":[{"title":"Example order book","richBody":{"value":"
Suppose you want to buy one hundred shares X. The order book below shows that you can buy 87 shares at €10.35. This is the lowest price at which they are offered at that moment. The remaining 13 shares can be bought at €10.37. If you want to buy all one hundred shares at once, you pay these prices. It is therefore good to also look at the second line of the order book, so you know what you need to offer to get the remaining 13 shares.
| Volume | Bid | Ask | Volume |
|---|---|---|---|
| 73 | 10,25 | 10,35 | 87 |
| 2 | 10,24 | 10,37 | 234 |
| 89 | 10,21 | 10,50 | 123 |
Decide your limit
As you might see, the highest bidder wants to pay a maximum of €10.25. It is up to you whether you accept the difference between the bid and ask price. You could choose to place your limit order somewhere in between, for example at €10.30. Then your order is placed on the first line of the order book, because you bid higher than €10.25. You are then first in line if a transaction takes place. This stays so until someone bids higher than you.
In investments that are traded a lot, prices can change every second. With market orders (see below) it is extra important to check the order book, so that you are not surprised.
"}}]},{"componentType":"sectionTitle","title":"1. Market order (bestensorder)"},{"componentType":"paragraph","richBody":{"value":"A market order is an order without a price limit. Your order is executed at the next available price. Because the opening price is uncertain, you cannot place this type of order outside exchange opening hours.
Tip: if you buy an investment that is not traded very much, we advise against using this type of order. The bid and ask prices can be far apart, so you may pay more or receive less than expected.
"}},{"componentType":"accordion","accordionList":[{"title":"Example marketorder (bestensorder)","richBody":{"value":"Suppose you want to buy share X, which is not traded much on the stock exchange. Because of this, the ‘spread’, the difference between the bid price and the ask price, is relatively large. You place a market order in these market conditions:
Example of a market order (bestensorder) | |
|---|---|
Bid price (the highest price for which you can sell the share): | € 10,25 |
Ask price (the lowest price for which you can buy the share): | € 12,00 |
Your market buy order (bestensorder) will then be executed at €12.00.
If you would want or need to sell the share again immediately, you can get a maximum of €10.25 for it. This is already a price loss of 14.5% compared with the purchase price. With a large spread it is therefore unwise to place a market order. You can use this type of order when the spread is low and you want to be sure that you get or sell the shares.
A limit order is an order where you set the maximum price you want to pay, or the minimum price you want to receive. Your order is only executed if the investment is traded at your limit price. There is no guarantee it will be executed — earlier, similar orders go first (the ‘first‑in, first‑out’ principle).
Your order expires if the price does not reach your limit within the time you selected. You can place limit orders outside exchange hours. In many cases, a limit order is the sensible option, because you know the maximum you pay or the minimum you receive.
"}},{"componentType":"sectionTitle","title":"3. Stop‑loss order"},{"componentType":"paragraph","richBody":{"value":"A stop‑loss order is a buy or sell order that automatically sells an investment when the price reaches a certain level. This level is the stop price. A stop‑loss order protects your position against a large fall in price. We send the order to the exchange for you. When the stop price is reached, the exchange carries out a market order. The execution price can be higher or lower than the stop price.
"}},{"componentType":"accordion","accordionList":[{"title":"Example stop loss-order","richBody":{"value":"You want to limit your loss
You bought a share at a price of €10 and you want to lose no more than €2. You then place a stop loss sell order at €8. When the price falls to €8, a market sell order is executed immediately. This way, you keep your loss within limits.
A stop‑limit order works the same as a stop‑loss order, except we place a limit order when the stop price is reached instead of a market order. The limit protects you from paying too much when buying or receiving too little when selling.
"}},{"componentType":"sectionTitle","title":"Which order types can you choose?"},{"componentType":"paragraph","richBody":{"value":"The available order types depend on the investment product and the market where it is traded. When you enter the order in My ING or in the ING app, you will see which order types are available.
"}}]},"legalZone":{"flexComponents":[{"componentType":"paragraph","title":"Good to know","richBody":{"value":"Investing involves risks and costs. You may lose (part of) your investment. Read more about the risks of investing and how you can limit them.
*This translation is intended for the customer’s convenience only. In the event of any inconsistency between the English translation and the original Dutch version, the original Dutch version shall prevail
"}}]}}}