There are two ways to buy and sell shares through Hatch: market orders and limit orders. Here's how they work:
When you place a market order, it's sent to the share market immediately and filled at the current market price.
- It's fast. You are virtually guaranteed your order will be filled as soon as possible (if the markets are open, it's usually immediate, if they are closed, usually it's as soon as they next open).
- When you buy shares, you simply enter how much you want to invest and you will generally get the exact number of shares for that money (e.g. For $500, you'll get 3.4787 shares). When you sell shares, you just enter how many you want to sell. You don't need to calculate anything.
- You can buy and sell full and fractional shares.
- You don't have a say in the price. Market prices can fluctuate from second to second (even when the markets are closed), so while we show an estimate in Hatch, the current price will most likely be a bit different when executed.
Limit orders give you more control over the price you buy and sell shares for. You enter the exact number of shares you want and the price you will pay for them (e.g. 5 shares at $50 each). If you're buying and the market price matches yours, or goes lower, your order will be filled. If your selling and the market price matches yours, or goes higher, your order will be filled
- You control the buy/sell price and are not impacted by market price fluctuations. You only buy or sell the shares at the price you specify.
- You can only buy and sell full shares.
- The full amount of your order is immediately deducted from your available balance until it's filled, you cancel it, or it's automatically cancelled at the end of the market day.
- Your order may not be filled if the market price doesn't reach your desired price.
A limit order is not a stop-loss order. If you place a limit order to sell shares at below market rates the order will fill automatically if the markets open or upon market open if it's closed. Hatch won't be liable for any loss incurred.