Order with limit - influence share price - increase yield
Frankfurt goes to the limit
Go to the limit, exert influence: Choose Frankfurt as your trading venue. You can influence the price by placing your order with a limit.
All new limit orders from 1,000 euros within the trading margin are displayed to all market participants at the Frankfurt trading centre - and thus change the margin. So be an active part of the market, set your limit within the range and increase your chance of a higher return through better prices.
Many investors judge the cost of buying or selling a security on the basis of the calculated transaction fees - an error, because a large proportion of the total trading costs is caused by the spread, i.e. the spread between the selling price and the buying price. The narrower the spread, i.e. the closer the buying and selling prices are to each other, the more favourable the order execution becomes.
On the Frankfurt Stock Exchange, limit orders of EUR 1,000 or more placed within the previous trading range are published by specialists and displayed to all market participants. This enables private investors to help shape the price and enables execution that can be even better than the previously displayed buy or sell price.
Especially with foreign and second-line stocks, it is worth placing limit orders in the spread and thus increasing the chance of a return. For private investors, the Frankfurt Stock Exchange is thus a superior alternative to other trading platforms where limit orders are not visibly adjusted. The investors' limit orders are only executed when the market moves accordingly. When placing an order, it is therefore definitely worthwhile to actively determine the trading venue yourself instead of trusting the default setting in the trading mask.
In addition, investors benefit not only from the legally prescribed neutrality, high transparency and supervised trading, but also from the large range of securities on offer.
In addition to careful risk assessment and the choice of a suitable security, the choice of trading venue can also play an important role in your investment success and have an impact on returns. Execution price, speed, trading volume and security are four of the most important criteria to consider. Go to the limit!
The advantages of Frankfurt as a trading centre at a glance
- Active co-determination of the price
- Best price
- High speed
- Tradability at any time
- Security through supervised trading
Best Price
At the Frankfurt Stock Exchange, investors receive a quality guarantee for the execution of German, European and US blue chips as well as ETFs*. This guarantee ensures that investors can buy or sell at prices similar to or better than those on the relevant reference market. The guarantee applies in principle to all orders up to a volume of EUR 7,500. In the event of a deviation, the specialists working at the Frankfurt Stock Exchange have undertaken to reimburse the difference.
In addition, there is an agreement between the specialists on the floor of the Frankfurt Stock Exchange to set the tightest possible spreads. This means that the difference between purchase and sale prices should be as small as possible. This ensures particularly cost-effective trading.
Introduction: Higher return opportunities with limit orders
Orders from 1,000 Euros with a limit within the trading margin are displayed to all investors. If you place such an order, it will be visible as an offer to the whole market. You can see how this works in this video.
Specifically: How to place limit orders
Money and letter prices are the offers valid for you if you want to buy or sell. In between is the trade margin. You can view the prices online and even place your own order to increase yield within the range. How to place your order cleverly is shown in this film.
High speed
A well-known saying is, "Speed is not witchcraft." This also applies to the Frankfurt Stock Exchange - although the speed at which orders are executed sometimes suggests that higher powers might be at work here. This is because most buy and sell orders are executed in less than a second at the Frankfurt Stock Exchange.
If this is not the case, there is usually a good reason for this: e.g. in the case of securities that are seldom traded or where there is an unusual order situation, it is sometimes worth taking a second look before the order is executed. Specialists keep an eye on the market and order situation and then ensure that the orders are executed in line with the market.
Tradability at any time
Anyone who buys a share that is traded very little quickly learns how important liquidity is on the stock market. Because if there are no buyers for your shares, you will not get rid of them in an emergency. This can result in painful losses. But investors who choose Frankfurt as a stock exchange don't have to worry about that. The specialists on the floor ensure liquidity by permanently quoting buy and sell prices. They strive to always provide sufficient volumes to enable continuous trading. This calms the nerves of investors, as they can buy and sell their securities at any time and avoid unpleasant surprises. Experienced traders know that in practice, something can go wrong in off-exchange direct trading.
The "stock exchange police" are watching
Another factor that you can rely on when trading on the stock exchange contributes to reassuring investors: constant monitoring from a neutral source. All trading on the Frankfurt Stock Exchange is regulated and monitored by the state. The Trading Surveillance Office (HÜSt) documents all transactions seamlessly as a neutral control body, intervenes in the event of discrepancies in the execution of an order and thus safeguards the interests of investors. It acts as a kind of "stock exchange police" and monitors compliance with trading rules.
*The guarantee applies to all securities of the German selection indices DAX, MDAX and TecDAX, to international shares of the Euro Stoxx 50 and S&P 100 as well as to all approximately 1,400 ETFs and ETPs listed on Xetra.
Know its price beforehand
With limits, investors determine the price at which they are willing to buy or sell. "Limits protect against price risks," says Robert Halver of Baader Bank.
You can make the market in Frankfurt
Oliver Roth, a specialist at Oddo Seydler, permanently sets quotes with volume and keeps still for it. He explains how you can even improve this price.
Co-determine market prices
Share prices are determined by supply and demand. The Frankfurt Stock Exchange does justice to this simple principle: During trading hours, prices are continuously quoted, i.e. the prices at which the market is prepared to buy or sell a particular security. Of course, investors can trade directly at these prices.
By placing limit orders, investors on the Frankfurt Stock Exchange have the opportunity to have a say in stock exchange prices. If they place an order in the spread, i.e. they place themselves with a limit between the buy and sell price, they participate actively in the price determination and open up the possibility of an even better price and thus an improvement in the yield. Every order over 1,000 euros is displayed to the market.
As soon as another market participant places an opposite order, these orders are also executed within the buy and sell price of the specialist.
Free online webinars
Intelligent order types: Use market developments with trailing stops and one-cancels-Other.
Limit Orders: This allows you to place your securities orders in a clever and yield-boosting way.
In half-hour webinars we explain to you how you can influence the price in specialist trading and how you can place your orders with the available order types to increase the yield.
First steps
What opportunities does the stock market offer me? How do I open a securities account? How do I trade a share? We answer these and many other questions with entertaining explanatory films and all important information.