How to Buy and Sell Stocks on the NGX: Full Guide Using DLM E-Trade

For a long time, many believed the Nigerian Exchange (NGX) was reserved exclusively for high net worth individuals. DLM Etrade is a stock trading web app platform that allows investors to buy and sell stocks of publicly traded company listed on the NGX, powered by DLM Securities which is an SEC-registered and regulated company in Nigeria

However, times have changed. With platforms like DLM Etrade powered by DLM Securities, those barriers to entry have drastically reduced, making it easy for investors to trade stocks easily for listed Nigerian companies. DLM Etrade has provided a fast, seamless gateway that connects investors directly to the NGX market floor, accessible right from the comfort of your home.

Despite this accessibility, the DLM Etrade platform is offering its investors. The moment you open the web app to trade shares; you will encounter the following terms on the DLM Etrade platform when buying and selling stocks. Which are as follows:

• Top Market Quotes
• Market Order vs. Limit Order
• Last Px (Last Price)
• VWAP (Volume Weighted Average Price)
• Hi/Low Limit Price
• Sell Imbalance

Don’t be intimidated! This guide will break down these technical terms into simple, actionable insights. We’ll show you exactly how to invest your capital and how to realize your profits using the DLM E-Trade platform.

1. Understanding the DLM Etrade Market Structure

When you prepare to purchase shares, imagine yourself in the middle of a bustling marketplace where various prices are being called out simultaneously. In this environment, understanding market terminology serves as your “eyes and ears,” helping you navigate the noise. Here is a breakdown of the daily trading session:

Session	Time
Pre-open	9:00–9:30 AM
Opening Auction	9:30 AM
Continuous Trading	9:30 AM–2:30 PM
Closing Auction	2:30–2:45 PM

Most trades occur in continuous trading sessions.

2. How to Buy Stocks on NGX Using DLM E-Trade

When placing a buy order, you will see several market indicators. Here are the most important ones:

Top Market Quotes: Understanding Bids and Asks

This section highlights the most competitive buyers and the most affordable sellers currently active in the market.

• Best Bid: This represents the highest price a buyer is currently willing to pay. If you are looking to sell your shares, this is the most favourable price available for an immediate transaction.
• Best Ask: This represents the lowest price at which a seller is offering their shares. If you are looking to buy, this is the most cost-effective price available for an instant purchase.

By monitoring these quotes, you can determine the most strategic price to execute your trade successfully.

Market Order: The Instant Execution

• A Market order is the fastest way to purchase shares. By selecting this option, you are instructing the platform to execute the trade immediately at the best available current price. It is the digital equivalent of saying, “I want to buy these shares now, regardless of the exact price.”
• Pro: Execution is instant. Your order is filled immediately, ensuring you don’t miss out on the current market movement.
• Con: In a volatile or “thin” market (where there are few sellers), you may end up paying a slightly higher price than you initially anticipated.

When to use it: Use a market order when speed is your priority, and you want to enter a position immediately before a potential price surge.

Limit Order: Precision and Control

• A limit order is designed for investors who prioritize price control. With this option, you specify the maximum price you are willing to pay for a share.
• Example: If a stock is currently trading at ₦100, but you believe that price is too high, you can set a Buy Limit at ₦95. Your order will remain pending until the market price drops to ₦95 or lower. If the price never reaches your specified target, the trade will not be executed.

When to use it: Use a “Limit order” when you are disciplined about your entry price and are willing to wait for a more favourable market valuation.

Difference between Market Order Vs Limit Order

Type of Order	What it Means (Naija Style)	When to Use It	The K-Leg (Catch)
Market Order	‘Buy for me now; I no get time!’ You buy instantly at the best available ask price.	You want to enter the market instantly, no delay.	You might buy at a slightly higher price if the market is slow (low liquidity).
Limit Order	‘I go buy, but only if the price reaches my level.’ You set the exact price you want to buy at.	You want to control the price and save money.	If the price never drops to your set limit, you will not buy the share.

High/Low Limit Prices: Managing Volatility

The NGX implements these boundaries to prevent extreme price fluctuations within a single trading day, ensuring market stability.

• Low Limit Price: This is the minimum price a share is permitted to reach during the current session (typically -10% from the previous day’s closing price). Orders cannot be executed below this threshold.
• High Limit Price: This is the maximum price a share is permitted to reach during the current session (typically +10% from the previous day’s closing price). Orders cannot be executed above this threshold.

Last Px (Last Price): The Real-Time Value

This represents the most recent transaction successfully completed on the exchange. It serves as the most accurate indicator of a stock’s current market value.

• Definition: The price at which the latest trade was executed.
• Why it matters: It provides an immediate snapshot of what buyers and sellers are actually agreeing to pay in real-time, rather than just what they are asking for.

VWAP (Volume-Weighted Average Price): The Market’s Pulse

VWAP stands for Volume-Weighted Average Price. While a standard average simply looks at price, the VWAP calculates the average price based on the total volume of shares traded at each price level. This gives you a more accurate picture of where the “big money” is moving.

• Above VWAP: When the current price is above the VWAP, it indicates bullish sentiment and strong market momentum. It suggests that the stock is currently trading with high demand.
• Below VWAP: When the price falls below the VWAP, it signals market weakness or a downward trend. It suggests that, on average, the market is currently bearish on that specific stock.

Sell Imbalance (Sell Imb)

If this number is high, it means there are more sellers than buyers.

• It is a warning sign that the price will likely be dragged down because too many people are trying to exit at the same time.

Difference Between Market Order and Limit Order (Buy) Vs Market Order and Limit Order (Sell)

Order Type	Strategy Context (When to Use)	The Danger (The Catch)
Market Order (Buy)	When a big company releases good news (like massive profit), and you fear the price will shoot up before you can set up a limit order. You must enter now!	You might overpay if the market is illiquid or the price is moving too fast.
Market Order (Sell)	When you see a high-sell imbalance (many sellers running) or a piece of bad news that will crash the stock. You must leave now!	You might sell too low, at the lowest best bid price.
Limit Order (Buy)	When you know the value of a stock is high, you are patiently waiting for a market correction or a dip. “I will buy at my own price.”	The market may never drop your price, and you miss the opportunity.
Limit Order (Sell)	When you have a profit target in mind (e.g., ₦120). You set the limit and go about your day. Take control of your exit strategy; you can decide to hold your position until the stock hits your exact profit goal.	The price may reach ₦119 and reverse, and you miss taking profit.

DLM Etrade Market Timing Video (How To Buy and Sell Stocks)

Step-By-Step Process to Buying & Selling Stocks on The DLM Etrade

Step 1: You will receive a welcome notification mail from DLM Etrade, which allows you to create a password for your trading account

Step 2: Upon login, you are directed to the dashboard; click on “Asset” to view your portfolio performance in one view

Step 3: To start buying/selling, click on “Trade”, then click on “New Trade.”

Step 4: Click on Buy to key in your buy order – Input your choice of security, input the quantity you would like to purchase, click on “Submit”

Step 5: Click on Sell to click in your sell order – input your choice of security, input the quantity you would like to sell, click on “Submit”

How to Consider When Selling Shares on NGX Using DLM E-Trade

Selling is simply the reverse of buying, but the platform still uses the same indicators.

Best Bid (Market Bid Price)

When you are ready to sell your shares, thebest bid is your most critical metric. It represents the highest price a buyer is currently offering for your stock.

• The speed of your sale depends heavily on bid volume (the number of shares buyers want to purchase):
• Best Bid Price: This is the most favourable price currently available to you for an immediate sale.
• High/Strong Bid Volume: This indicates high demand. If there are plenty of buyers, your trade will be executed instantly and in full.
• Low/Weak Bid Volume: This indicates low demand. Your sale may be delayed, or you might only sell a portion of your shares at your desired price (a “partial fill”), similar to being caught in slow-moving traffic.

Sell Market Order: The Rapid Exit

A sell market order allows you to liquidate your position immediately at the most favourable price currently available. This is the optimal tool when speed is more important than a specific price target, especially if you want to secure your gains or exit a position during a sudden market downturn.

• Definition: You sell your shares instantly at the current best available bid.
• When to use it: when you need to exit a trade quickly.
  • When the market is highly liquid (has many active buyers).
• Downside: During periods of high selling pressure or extreme volatility, the execution price may be lower than you originally anticipated.

Sell Limit Order: Maximizing Your Returns

A sell limit order is used when you want to specify the exact price at which you are willing to sell your shares. This ensures you do not sell for less than your target value.

• Example: Suppose you own shares of Access Bank currently trading at ₦100. If you believe the price will rise further, you can set a sell limit at ₦110. Your order will remain in the system and will only execute once the market price reaches ₦110 or higher.
• When to use it: Use this when you have a specific profit target in mind and are willing to wait for the market to reach that valuation.

Using VWAP for Strategic Decisions

Monitoring the distance between the current market price and the VWAP can help you time your exits effectively.

• Price significantly above VWAP: When the price climbs well above the VWAP, it often indicates an “overbought” condition. At this stage, institutional investors and experienced traders typically begin taking profits to lock in gains.
• Price falls below VWAP: If the price drops below the VWAP line, it serves as a signal of market weakness. This often suggests that the downward momentum may continue, making it a prudent time to exit your position to minimize potential losses.

Sell Imbalance

A high sell imbalance affects selling speed:

• More sellers than buyers → price drops
• It’s a good time to exit early to avoid a crash

The Sweetest Story: What Happens After You Sell Shares (The Moment of Truth)

Imagine you are a disciplined investor who has just sold 5,000 shares of Zenith Bank because the market reached your predetermined price target. You have successfully realised a significant profit.

Once you tap “Submit Sell Order,” the transaction is executed instantly. Here is the five-part process that unfolds on your device and within the exchange’s infrastructure:

Step 1: Immediate Portfolio Update

The moment your order is executed, your shares are transferred out of your account. For an investor like Mama Nkechi, looking at her portfolio screen, she will see her Zenith Bank holdings decrease by exactly 5,000 shares.

• Real-Time Asset Removal. This process occurs instantaneously. The buyer takes ownership of the shares, and the electronic record in your Central Securities Clearing System (CSCS) account is updated to reflect that you no longer hold those specific units. Once the trade is executed on the exchange, the transaction is final and cannot be reversed.

Step 2: Provisional Cash Credit and Settlement (T+2)

Although the funds have not yet physically arrived in your personal bank account, the DLM E-Trade app ensures you aren’t left in suspense. An investor like Mama Nkechi will see her “Available Cash” balance increase immediately, reflecting the value of the sale, even if the funds are not yet eligible for withdrawal.

• Instant Credit vs. T+2 Settlement. While the app reflects the transaction immediately, the Nigerian Exchange (NGX) operates on a T+2 settlement cycle. This means it takes two business days for the clearinghouse to verify the trade and finalize the transfer of funds between the relevant banks and accounts.
• Immediate Visibility: You see the provisional balance right away, so you can plan your next move.
• The Wait Period: The cash becomes fully “settled” and withdrawable after the second business day.
• Reinvestment: Often, you can use this provisional cash to buy new shares immediately, even while waiting for the T+2 period to conclude.

Step 3: Performance Reporting and Realized Gains

This is the moment of confirmation. The portfolio updates instantly to show the investor exactly how much profit was earned on the trade. The platform automatically calculates the difference between the initial purchase price and the final selling price to show the net result.

Immediate Capital Gains/Losses Calculation. Your investment dashboard provides an immediate “scorecard” of your trade success. You will instantly see:

• Realized Profit or Loss: The exact amount in Naira gained or lost from the transaction.
• Percentage Returns: The performance of the trade relative to your initial investment.
• Total Reinvestment Capital: Your updated cash balance, showing the total funds available to be deployed into new opportunities.

Step 4: The Transfer of Ownership Rights

A share is more than just a ticker’s symbol on a screen; it represents partial ownership of a corporation. The moment an investor like Mama Nkechi sells her Zenith Bank shares, she relinquishes all privileges associated with that ownership. Much like selling a vehicle, once the keys are handed over, the original owner no longer has a claim to the car.

Immediate Termination of Shareholder Rights. This is a critical point for every investor to understand. The moment the trade is executed, you lose all rights tied to those shares. If the company announces a dividend payment, a bonus issue, or a shareholders’ meeting shortly after the sale, you will not be eligible to participate.

• Dividend Rights: The right to receive a portion of the company’s earnings.
• Voting Rights: The ability to vote on corporate policies or board members.
• Bonus Eligibility: The right to receive additional free shares during corporate action.

These benefits transfer immediately to the new buyer. Therefore, timing your exit is essential if you wish to benefit from upcoming corporate actions.

Step 5: Immediate Reinvestment and the Power of Compounding

Every seasoned investor knows that time is money. For someone like Mama Nkechi, seeing a high-potential opportunity at First Bank while her Zenith Bank proceeds are still in “settlement limbo” is no longer a problem. Modern platforms like DLM E-Trade provide the flexibility to move quickly. Even though the cash hasn’t officially cleared for withdrawal, you can reinvest it immediately.

Trading on Provisional Cash. This is a significant competitive advantage for Nigerian investors today. While the NGX requires a T+2 window (trade date + 2 business days) to finalise the transfer of funds for cash withdrawal to your personal bank, the platform allows you to use your unsettled sale proceeds to open new positions instantly.

• Capital Efficiency: Your money never sits idle; it can move from one productive asset to another in seconds.
• Agility: You can capture market dips or time-sensitive opportunities without waiting for the clearinghouse cycle.
• The Cycle Continues: Once you “harvest” your profit from one stock, you can immediately “plant” that capital back into the market to keep your wealth growing.

Conclusion on Buying and Selling Shares on DLM Etrade

The DLM E-Trade app is a powerful tool, but your success ultimately depends on your personal discipline and strategy. To navigate the market effectively, follow these core principles:

• Conduct Thorough Research: Avoid making decisions based on rumours or social media trends. Instead, perform fundamental analysis by evaluating a company’s financial health. Pay close attention to its Price-to-Earnings (P/E) ratio, which helps you determine if a stock is overvalued or undervalued, and its dividend policy to understand how the company rewards its shareholders.
• Diversify Your Portfolio: Never concentrate all of your capital on a single investment. Spread your funds across various sectors such as banking, telecommunications, agriculture, and manufacturing. This diversification acts as a safeguard, ensuring that a downturn in one industry does not jeopardise your entire portfolio.
• Prioritize Limit Orders: Maintain patience and avoid the urge to chase volatile prices. By using “limit orders”, you ensure that you only enter a trade when the market meets your specific price criteria. This professional approach separates strategic investors from speculators.

The market is now accessible to you. With these tools and a disciplined mindset, you are ready to trade wisely and build your financial future.

Investing in the stock market is one of the most proven ways to build long-term wealth and outpace inflation. With DLM E-Trade, the tools you need to analyze, execute, and manage your investments are more accessible than ever. By leveraging a platform backed by the regulatory oversight of the S.E.C. and the expertise of DLM Securities, you can trade with the confidence that your assets are secure and your orders are executed with precision.

The market is full of opportunities. Don’t let complexity hold you back start your journey toward financial independence today by opening an account and taking ownership of your financial future on the NGX.

Ready to start your investment journey? Sign up today, execute your first trade with confidence, and watch your capital work for you.

---