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An easy read on how trade settlement works

Posted on 2/28/19 at 8:38 am
Posted by athenslife101
Member since Feb 2013
18553 posts
Posted on 2/28/19 at 8:38 am
LINK

Thought this might be helpful on here in layman’s terms for people who are less familiar with how trades are actually processed
Posted by danny d lsu
Baton Rouge, LA
Member since Sep 2007
1542 posts
Posted on 2/28/19 at 10:01 am to
It was helpful to see the diagrams and reading the article but coming from someone who has very limited knowledge of how the stock exchanges works I'm still lost.
Posted by athenslife101
Member since Feb 2013
18553 posts
Posted on 2/28/19 at 10:10 am to
An exchange is just a marketplace. Realistically, only certain members are allowed to act on that marketplace. Those are the brokers.

The brokers open up positions on the exchange and you as an investor take up opposite position on the transaction.
Posted by athenslife101
Member since Feb 2013
18553 posts
Posted on 2/28/19 at 10:12 am to
To add, in areas of low volititlity, the brokers kinda lose out because they can’t make money off investors bad decisions.

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