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user9822
user9822

Firstly the buy order at $1 would be canceled by the exchange as it is too far away from the current price.

Secondly, a limit sell order at $1 (which would probably be cancelled as well) means that you would like to sell at not lower than $1 but possibly higherat $1 or more than $1. If the current highest bid is $399.99, then this is the price you would sell for (subject to the volume you are selling to the volume bid at $399.99).

The only way you could manipulate the price down is if you owned a very large volume of shares and placed many large volume orders at progressivly lower prices. However, unless this stock had virtually no liquidity, you would never drive the price down from $400 to $1, and you would lose alot of money in the process.

Firstly the buy order at $1 would be canceled by the exchange as it is too far away from the current price.

Secondly, a limit sell order at $1 (which would probably be cancelled as well) means that you would like to sell at not lower than $1 but possibly higher than $1. If the current highest bid is $399.99, then this is the price you would sell for (subject to the volume you are selling to the volume bid at $399.99).

The only way you could manipulate the price down is if you owned a very large volume of shares and placed many large volume orders at progressivly lower prices. However, unless this stock had virtually no liquidity, you would never drive the price down from $400 to $1, and you would lose alot of money in the process.

Firstly the buy order at $1 would be canceled by the exchange as it is too far away from the current price.

Secondly, a limit sell order at $1 (which would probably be cancelled as well) means that you would like to sell at not lower than $1 but at $1 or more than $1. If the current highest bid is $399.99, then this is the price you would sell for (subject to the volume you are selling to the volume bid at $399.99).

The only way you could manipulate the price down is if you owned a very large volume of shares and placed many large volume orders at progressivly lower prices. However, unless this stock had virtually no liquidity, you would never drive the price down from $400 to $1, and you would lose alot of money in the process.

Source Link
user9822
user9822

Firstly the buy order at $1 would be canceled by the exchange as it is too far away from the current price.

Secondly, a limit sell order at $1 (which would probably be cancelled as well) means that you would like to sell at not lower than $1 but possibly higher than $1. If the current highest bid is $399.99, then this is the price you would sell for (subject to the volume you are selling to the volume bid at $399.99).

The only way you could manipulate the price down is if you owned a very large volume of shares and placed many large volume orders at progressivly lower prices. However, unless this stock had virtually no liquidity, you would never drive the price down from $400 to $1, and you would lose alot of money in the process.