I spoke to IB today, and I wanted to double check with you guys about this. Stock XYZ, traded on NASDAQ or NYSE, closes at $10.00. I want to place an order to buy the stock on the open the next day. I would pay anywhere between $9.75 and $10.75 for the stock (this is a hypothetical, there's a reason for the upper bound). So I want to make sure that if the stock happens to gap down and open under $9.75, I am not filled. Also, if it gaps up too high, I want to avoid being filled. I want my fill in a specific range. IB CS told me that a stop limit order would do this. He said the stop price would be $9.75 (the price at which the order is triggered). He said I must then enter $10.75 as the limit. This would ensure that I don't get filled higher than $10.75 or lower than $9.75. My questions are - can I use a stop limit order to initiate a position? I thought I had read somewhere on here that this order type can only be used to close an existing position. Second, let's say that the stock opens at $10.00. My stop is hit and a limit order is submitted to buy. Since the highest price I am willing to pay is $10.75, is there any chance (on the NYSE I guess) that they will fill me at that price regardless of where the majority of stock prints at in the first minute or two? I assume that SMART is supposed to fill me on NASDAQ at the best possible price so that if the majority of trade in the first 30 seconds is right around $10.00, I should get a similar fill. I know this is a pretty naive question, but I'm trying to make sure I submit my orders in an optimal way.