# How will a limit order be executed when the stock market opens if there is a large change from the price of the day before?

Maybe a dumb question, but I'm just learning.

So news and after/pre market trading all help to determine what the price will be for a stock when it opens, but does this affect all orders the same?

Here is what I mean: suppose a stock ends the day trading at \$10/share. After the market is closed I place a limit order for \$10.10. The next day the market opens trading at 10.50, will my order have gone through? I guess I'm confused on how prices get determined first thing in the morning. Is it an all at once thing where everyone buying first thing gets the same price, or is the sudden jump just an averaging of the affects of a bunch of sales?

## 1 Answer

The next day the market opens trading at 10.50,

You haven't specified whether you limit order for \$10.10 is to buy or sell.

When the trading opens next day, it follows the same process of matching the orders. So if you have put a limit order to buy at \$10.10 and there is no sell order at that price, your trade will not go through. If you have placed a limit sell order at \$10.10 and there is a buyer at or higher price, it would go through.

The Open price is the price of the first trade of the day.