How to Buy Orphazyme (ORPH) Stock

Whether you’re buying Orphazyme stock as a long-term investment or if you’re in search of a stock  to day trade, you will need to open an account with a broker. A broker is a financial services company that buys and sells shares of stock on your behalf, sometimes in exchange for an annual fee or commission. There are dozens of brokers offering trading platforms and online accounts, many will allow you to buy and sell Orphazyme stock.

When determining which broker to open an account with, it is important to consider what fees the broker charges, either per-trade or annually, if at all; the types of research offerings the broker offers; the complexity of the broker’s trading platform (is it a simple layout for beginners, or is it a more complex layout with an abundance of charts and data for advanced traders); access to foreign markets and cryptocurrency markets, if these exchanges interest you; and finally the types of orders the broker supports, more on this in step 3 below.

After you have opened your brokerage account and have deposited funds, it is time to decide how many shares of ORPH you’d like to purchase. Start by examining the current market price of ORPH and the amount of money that you want to invest. Assume that if you invest today, you’ll pay near the market price. Remember that investing in any stock comes with the risk that your investment can decrease in value at any time, so it is imperative that you do not invest more than you are  comfortable losing. You may want to track and monitor the changing price of ORPH for a few days before you invest to be sure that you’re buying at the most advantageous time. 

There are several common order types that most brokers support which allow you to decide when you want your order to be executed, the price that you are willing to pay per share of ORPH and more. Here is a quick summary of some common terminology and order types you will likely encounter when buying ORPH. 

Bid
The bid price is the current highest price a buyer is willing to pay for a share of ORPH. This can help you determine whether or not you are overpaying for your shares.

Ask
The ask price is the current lowest price a seller is willing to charge for a share of ORPH.  
 
Spread
The spread refers to the difference between the bid and the ask. The spread is typically not something to worry about with stocks that have high trading volume. Stocks under $5 and those that have low daily trading volumes might have a wide spread between the bid and the ask.
 
Limit Order
A limit order allows you to set a max price you are willing to buy for and will only execute when the stock is at or below your specified price. For example, you might set a limit order that tells your broker that you want to buy ORPH stock at a maximum price of $10 per share. If the price of ORPH falls to or below $10, your broker will execute the trade. If the price of ORPH rises above $10 per share before your entire order  could be filled, your broker will stop the order until prices drop again to your set limit. If the price never falls to $10, the order will never execute. This gives you more control over the price you pay per share, which can help you stick to a budget.

Market Order
A market order allows you to buy the next available shares of the stock you’re interested in, regardless of what the ask is. When you place a market order, you do not have control over the price your order will be executed at — instead your broker will look for the fastest way to get you the number of shares of ORPH that you want. Market orders give you less control over the price you pay per share of ORPH, but this order type will allow you to buy ORPH faster than a limit order would. 

Stop-Loss Order
A stop-loss order is a type of sell order that tells your broker that you want to sell your shares if ORPH falls to a certain price. For example, let’s say you bought 10 shares of ORPH at an average price of $10 a share, you may set a stop-loss order at $9.50 if you want to limit your downside to 5%. This means that if the price of ORPH falls to $9.50, your broker will automatically sell your shares. Aptly named, stop-loss orders help you stop your losses on a stock by selling your shares when they reach your specified loss threshold. It may be helpful to think of this as a selling equivalent of a limit order.

Stop-Limit Order
A stop-limit order is a combination of both a limit order and a stop-loss order. When you place a stop-limit order, you will need to specify both an upper limit price and a lower stop price. For example, when buying ORPH, you might set a limit price of $11 and a stop price of $9.

If the price of ORPH rises above $9, your stop-limit order will be converted to a limit order. From here, your broker will fill the order as long as ORPH stock can be purchased for $11 a share or less. If the price rises above $11, your broker will stop filling the order. This gives you as the investor more control over the price that your order is filled at. 

Trade execution occurs upon the completion of a buy or sell order for a stock. An important distinction to note is that the execution of an order occurs when it is filled, not when you place it. Most brokerages will notify you upon execution of a trade. Additionally, when placing an order other than a market order, your broker will likely ask you to specify an expiration date for how long you want your order to be active. On Robinhood, for example, traders can choose to have their orders valid either for the day the order is placed or mark it as “Good ‘til Cancelled” in which case the order will be valid for up to 90 days.