Placing Orders and Trades
In this chapter, we turn our attention to arguably the most interesting part of the whole trading process, placing orders and trades. An order is an intention to trade. When you place an order for a security, you intend that your order is filled and hope that the price moves to your advantage. When an order is fully or partly filled, it results in the creation of a trading position. An active trading position creates an unrealized profit or loss situation. When this trading position is closed, the unrealized profit/loss is realized and the trader is left with an increased/decreased total book amount.