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Hi I was trying to buy DOG. I put in limit order at ask price not bid price since I want the order to execute all at once. it is penny more than bid price. So if ask price is 26.11 and bid price is 26.12, I would submit limit order at 26.12. Normally I would see such order would get executed right away. But for this stock, everytime (i tried 3-4 times) I submit limit order, ask price and bid price goes up. My bid price become ask price and ask price become one penny more. I feel like someone is doing price matching or hustled me to higher price. Volume of ask size is big enough to fill my order right away but it is not. What is going on?

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I am trading with Fidelity. Everytime I submit order ask price goes up one penny so my order did not get executed. Also there is increase in bid size. When I cancel the order, bid size got decreased by the amount of my order plus additional. Then the ask price went back down by penny. I just want the order to execute right away so I am bidding with ask price and ask size is three times more than my order size so technically it should get executed right away. Anyway I waited to see what happen. My order size is 40. The stock got traded at my bid price for many other orders but not my order. Bid size goes up and down to 40 which is my bid size. Then other orders came in and size went up again and those got traded. I think my order is just sitting at the bottom and get executed only when no one really want to pay the price I pay. So as soon as my shared got traded, the bid price went down by penny. So I think my trades are placed at the bottom of the queue and other trades are getting done on top of it.

  • If I am correct DOG is a bear ETF of the DJ. So if the DJ is falling DOG goes up. So you should be tracking what the DJ is doing when putting you're order in. – Victor Mar 6 '14 at 22:47
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    If your example prices, the bid (26.12) is higher than the ask 26.11, which shouldn't be possible. (It's called a crossed market, but it ought not ever happen while trading is open. – Jaydles Mar 7 '14 at 3:54
  • Crossed markets are rare but they do occur and they last for mere seconds. I think that the OP confused the bid with the ask in his description. – Bob Baerker Sep 2 '18 at 19:55
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The price is moving higher so by the time you enter your order and press buy, a new buyer has already come in at that time and taken out the lowest ask price. So you end up chasing the market as the prices keep moving higher.

The solution: if you really want to be sure that you buy it and don't want to keep chasing the market higher and higher, you should put in a market order instead of a limit order. With a market order you may pay a few cents higher than the last traded price but you will be sure to have your order filled. If you keep placing limit orders you may miss out altogether, especially if the price keeps moving higher and higher. In a fast moving market a market order is always best if your aim is to be certain to buy the stock.

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    Also, remember that retail orders (like yours) almost never make it to the actual exchanges. They mostly get filled within your retail broker's existing order pool (like their own miniature completely-hidden stock market). There's no telling what shenanigans your broker may be doing to your order to ensure they turn a profit. You should read the fine print in your brokerage contract to see how long they might delay your order, and whether they're under any obligation to send it to an actual exchange. – dg99 Mar 6 '14 at 21:07
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    @dg99 - this can be reduced by using a broker who employs direct market access (DMA). When I place limit orders with my broker the order goes immediately through, as I can see it instantly appearing in the market depth. When I place market orders I get a quick notification that it has been traded with my successful order details. – Victor Mar 6 '14 at 21:33
  • They why does the price go back down when he cancels it? – Joshua Feb 16 '15 at 17:02
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An even better solution, one used by successful day traders is to use marketable limit orders. You dont place the limit at the ask where you may not get filled right away but a few cents above ask. This gives you a good chance of getting filled without too much risk. A market order carries a bigger risk. Its not terrible but once in a while you could get a big squeeze and a bad fill.

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