How a trade works

Shares, buying, selling, and your average price.

You buy in 'shares'

A company is split into shares. If a share costs $50 and you invest $100, you get 2 shares. How much of the company you own is just how many shares you hold.

Sell higher than you bought — that's the goal

You make money if you sell for more than you paid. Buy 1 share at $50 and sell at $70 → $20 profit. Sell at $40 instead → $10 loss. That gap is your profit or loss.

Your average price is the line

Buy shares at different prices and your 'average cost' blends them together. That average is the line between being up or down on a position — above it you're winning, below it you're not.

Continue with Stocks lessons.

For education only. Quoliv uses fake money and does not provide personal financial advice.