I dont want to sound like an idiot, but...

C

cashmoney69

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.
 
Quote from cashmoney69:

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
More...
.............................................................................
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
 
Quote from MiniDowTrader:

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.
More...

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!. :D

- nathan
"Life ends when you stop dreaming...hope is lost when you stop believing...and love fails when you stop caring"
 
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