Trade Execution in Real Life

During market hours (9:30am–4:00pm ET):

  • Most trades execute within seconds — your order matches a buyer or seller almost instantly
  • Price you see isn't always exactly what you get — there's a small "spread" (gap between bid and ask prices), so you might get $46.15 instead of $46.16

After market close:

  • Your order goes into a queue and executes at the next market open
  • The price could be higher or lower than what you saw when you placed it — markets move overnight

Market orders vs. limit orders:

  • Market order: "Buy/sell at whatever the current price is" — fast but you don't control the exact price
  • Limit order: "Only buy if price is X or better" — you control price but it might not execute if the price never reaches your target

Settlement (when money actually moves)

  • Since May 2024, U.S. trades settle in 1 business day (T+1)
  • E.g. sell LLY on Monday, the cash is available Tuesday
  • brokers hold the cash until settlement

What Can Delay Things

  • Low-volume stocks (fewer buyers/sellers = slower matches)
  • Volatile days (price swings so fast the system pauses trading — called a "circuit breaker")
  • After-hours orders (wait for market open)