Limit orders allow buying or selling stocks or options at a certain price or "better". Is there a way to enter or request that an order execute only at an exact price (for whatever reason)? If not, are there regulatory or other reasons why such an order cannot be entered?
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6Why would you NOT want to trade at a better price? There is no mechanism to trade at a specific price because there is no practical reason that I can think of to forego a better price.– D StanleyOct 19 at 17:59
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@DStanley By your logic, there would be no reason for stop orders. The reason I might "forego a better price", say when buying, is that if the price goes down too much, it may indicate that the technical strength that motivated me to buy is no longer present.– nanomanOct 19 at 23:55
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1The only way to execute the buying or selling of a stock at an exact price would be with an option. A limit order will guarantee that your trade will not be executed at an inferior price but there is no standard order type that avoids price improvement. For further information, read about the NBBO quote.– Bob BaerkerOct 20 at 4:36
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So it's a technical trading strategy? I want to trade at this price, but if it goes too low I want to stay away?– D StanleyOct 20 at 13:07
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@BobBaerker that's not true. You're at the mercy of the MM. I mean, I have never seen any option that let's me trade at $xx.69.– findwindowOct 20 at 20:40
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1 Answer
No. (Or at least, "not today, not for retail/individual investors")
The Regulation National Market System (NMS) established by the Securities and Exchange Commission in 2005 was designed in part to help investor orders execute at a better price whenever possible.
The Order Protection Rule portion of the Regulation NSM mandates, among other things, that brokers route orders using the "most advantageous terms for the customer [..]"
So price improvement is effectively built into the requirement since it is "most advantageous".
