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Basics

Basic4 Min Read

How the Stock Market Works

The road your order travels from the moment you tap Buy to the shares landing in your account.

An exchange is not a building; it is a matching engine. Its job is exactly one thing: bringing a buyer and a seller together on a price. Everything else is infrastructure built around that simple task.

The Order Book

Every stock has an order book: one side wants to buy, the other wants to sell.

SideWhat it saysExample
BidThe highest price a buyer will pay500 shares at $100.20
AskThe lowest price a seller will take300 shares at $100.24

The gap between them is the spread. The moment a buy order touches the ask side, a trade happens and that number becomes the "last price." The price you see on screen is exactly that: the last executed trade — the past.

The Queue Rules

Matching follows two rules, both simple:

  • Price priority — the better price trades first.
  • Time priority — between two orders at the same price, the earlier one trades first.

That is why a "market" order eats through the book starting from the best opposing price and moving up. A large order doesn't fill at one price; it fills across several levels.

The Institutions in Between

You don't connect to the exchange directly. The chain looks like this:

The Journey of an Order

  1. YouTap "buy" in your broker's app.
  2. Your brokerChecks the order and your balance, then routes it to a market.
  3. Market maker or exchangeThe order matches against the other side of the book. This step usually takes a fraction of a second.
  4. SettlementThe trade is recorded and shares and cash change hands. In the US this is T+1: the next business day.

Session Hours

The US market runs in three parts. Istanbul times shift twice a year with US daylight saving; the Istanbul column below is the summer schedule.

SessionNew YorkIstanbul (summer)Character
Pre-market4:00 – 9:3011:00 – 16:30Thin, jumpy, wide spreads
Regular session9:30 – 16:0016:30 – 23:00Nearly all the volume
After-hours16:00 – 20:0023:00 – 03:00Earnings reactions live here

The two busiest minutes of the day are the open and the close. In the closing auction, index funds settle the day's inflows and outflows — which is why huge volume prints in the final minute.

Where You'll See It on This Site

The countdown on the home page shows the time to the next open or close. The Today's Flow strip lines up economic releases and earnings on one time axis; every time is written in both New York and Istanbul time.

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