There are three basic principles in stock trading: 1. Price priority principle, 2. The principle of time priority in transactions. Trading decision principle. After a securities company accepts a client's entrustment and fills in the power of attorney, it shall immediately notify its broker in the stock exchange to carry out the entrustment. Because more than one customer wants to buy or sell the same kind of securities, they trade through bilateral auctions, that is, in the process of trading, buyers and sellers compete at the same time. There are three main ways of bilateral bidding in stock exchanges: oral bidding transaction, intra-board bidding transaction and computer terminal bidding declaration.
1. Price priority principle The price priority principle means that a higher buying declaration takes precedence over a lower buying declaration, and a lower selling declaration takes precedence over a higher selling declaration; Declare at the same price, the first to declare is preferred. In addition to the above-mentioned priority principle, when computer terminals declare bidding and board bidding, market trading is given priority to restrict trading.
2. The principle of trading time priority refers to: oral bidding, arranged in the order heard by the intermediary broker; When the computer terminal declares the bid, it is arranged in the order of time accepted by the computer host; When bidding on the chessboard, arrange them in the order seen by the intermediary brokers. When it is impossible to distinguish the principles of stock trading, the intermediary broker will organize a lottery to decide.
3. The principle of deciding the transaction This principle refers to the fact that when bidding verbally, the price of the highest buying declaration and the lowest selling declaration is the same, which means the transaction is completed. When applying for bidding at a computer terminal, except as stipulated in the preceding paragraph, if the declared price of the buyer (seller) is higher (lower) than the declared price of the seller (buyer), the average intermediate price of the declared prices of both parties shall be adopted; If the buyer and the seller only declare the market price but not the unlimited price, the latest transaction price of the day or the price indicating the current price shall be adopted.