Can I place this order?

Discussion in 'Order Execution' started by jj_jere@hotmail, Nov 26, 2002.

  1. Can I place this order on the NYSE?
    Buy 1000 shares of XYZ on the opening @ a limit of 80, not to be less than 79.
    Thanks JJ
  2. THats a really good question .....The scenario where i would want to place that order is when a stock is spreading up, lets say the bid is 85 and ask is 87
    and the open book is showing pre open a bid of 20000 @ i would want to put a buy limit @87 but no lower than 86.81

    and for the short side if the bid is 85 and offer is 87 and there is an offer on the open book of 20000 @85.20 then i would want to put a sell limit @85 no higher than 85.20

    so far i havent found a way to do this except hedge myslef by placing a buy limit over my the where the big offer is ( if im trying to shory)

    and a sell limit where the big bid is (when im trying to get long)
  3. Magna

    Magna Administrator

    That would be a buy-stop-limit order, with the stop at 79 and the limit at 80. The only question is whether your broker/software allows such orders to be executed at the open.
  4. I think you could do it with 2 orders.

    1 order: Buy OPG limit 80
    2nd order: Sell Stop OPG 79

    This way, if he opens it above 80 you are flat. If he opens it between 79.01 and 80, you are long. And if he opens it at 79 or below you are flat, since both orders will be filled.
    Like Magna said, your software must have this capability.
  5. FYI: you cannot place an order to sell unless you are actually long the stock ... even though you have a corresponding order to buy. You can place a sell-short order, but obviously that will only execute on an uptick or a zero-plus tick. If you had a bullet or conversion on the stock, then you could place the sell order.