It's my understanding that LIMIT orders are not supposed to be executed until the stock reaches a certain price. I put in a buy limit order for AMAT at 17.90, but I was filled instantly at 17.84.. This is not supposed to happen....or is it? - nathan
Your limit becomes a market order when the market reaches below your limit bid. Alternatively, you limit offer becomes a market offer when the price rises above your order. Look on the bright side.....you were willing to pay 17.90 for the stock and you received it for 6 cents less.
That's a new one! A limit order NEVER becomes a market order, perhaps you are thinking of a stop order, which becomes a MKT order when it ticks @ the stop price. Good Trading!
nathan- were you trying to catch a breakout with a limit order above the previous day's high? if so, you should have used a stop limit buy order or a stop market buy order depending on your broker.
............................................................................. Ive had this happen several times during the last couple of months. All NYSE i think. From IB order types page..... "A limit order is an order to buy or sell a contract at a specified price or better." ....... rcj
no, but i can tell you one thing, all these different types of orders are messing with my head - nathan
A stop buy will attempt to execute your order when the stock reaches the price you specified, or a higher price. A limit buy will attempt to execute your order when the stock reaches the price you specified, or a lower price.
To summarize what have been said in the previous posts: BUY OnStop - Triggered price must be set higher than the market price Limit - At specified price or lower SELL OnStop - Triggered price must be set lower than the market price Limit - At specified price or higher Trailing Stops - Click on the link Please note the OnStop once it's triggered it will become a market order. Some brokers have an option to limit the buy or sell price. For example, stock XYZ is currently traded at $5.00, a buy OnStop order is placed at $6.00 with a limit at $6.50, meaning that once the price is reached at $6.00, your broker will try to buy at the price around $6.00 but no more than $6.50.
Thanks both of you, that clears things up alot!. - nathan "Life ends when you stop dreaming...hope is lost when you stop believing...and love fails when you stop caring"