Do you know what prepaid bills are? Many people will be confused when they encounter the word prepaid bill in securities trading, and they don't understand the meaning of this word. So, today I will carefully collect and sort out the meaning of prepaid bills for you, hoping to help you.

What is prepaid bill 1 First of all, prepaid bill is a way to place an order in securities trading (entrusted transaction).

It is a transaction form that estimates a purchase price in advance, fills in it in advance and submits it to the securities business department first. This kind of transaction in the stock market has an image metaphor: high selling is called "hanging basket"; Buying at a low level is called "burying mines". The vast majority of people who buy and sell securities in the stock exchange cannot directly participate in the transaction, but entrust brokers with membership. Every operation, investors should provide information such as variety and price to brokers, which is called placing an order, and brokers will complete the operation on your behalf according to your order information. The advantage of prepaid bills is that they can lay out the buying points and selling points in advance, so as to achieve the effect of getting there first, but only if they have good trend judgment ability. Note that the function of paying the bill in advance is provided by the broker (your agent), and the specific function and operation time are of course determined by it, which has nothing to do with the exchanges (such as Shanghai Stock Exchange and Shenzhen Stock Exchange). The bill finally submitted to the exchange is still at the official trading time.

Prepaid bill application

One of the application examples is that some stocks that may have a daily limit at the opening of the market can avoid the trouble of not being bought because of the daily limit at the opening of the market by submitting the prepaid purchase order in advance. Similarly, for stocks that may fall as soon as they open, submitting the prepaid bill for sale in advance can also improve your chances of successful escape.

For example, if you have a clear grasp of the trend of the stock price, but you don't have time to operate when the market opens, you can also submit a prepaid bill before the market opens (even the night before), and then "automatically" close it after the market opens.

Application example 3. Prepaid bills generally allow you to directly divide the bills into different numbers. When the market has opened, it is more convenient to use this function to lighten or add positions in batches. For big money speculators, it can improve the efficiency of "work" and facilitate those who like to hide big orders.

What's the difference between prepaid bills and conditional bills?

1, prepaid bill

Refers to the purchase pending order below the market price or the sale pending order above the market price, which enters the trading system immediately after the order is placed. Now many softwares do not support embedding.

2. Rate table

It refers to buying above the market price (such as breaking a certain pressure level) or selling below the market price (such as falling below a certain support level), and the order only enters the trading system when the trigger condition is established.