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I'm following a volatile stock that is in a downward trend, but if it suddenly starts to rise I would like a buy order to trigger.
Lets say the price is at 100 and I place a buy order with a trigger limit of 101 or higher and a price of 102. Does this mean that I will definitely pay 102 or will it be whatever the price is when the buy order is triggered?
If you want to buy once the price goes up to $101 or above you can place a conditional order to be triggered at $101 or above and for a limit order to entered to buy at $102.
This will mean that as soon as the price reaches $101 or above, your limit order will enter the market and you will buy at any price from $102 or below.
So if the price just trickles over $101 you will end up buying at around $101 or just over $101. However, if the price gaps above $101, say it gaps up to $101.50, then you will end up buying at around $101.50. If the price gaps up above $102, say $102.50, then your limit order at $102 will hit the market but it will not trade until the price drops back to $102 or below.
I think that if the price does not go very far up, then your order will open on 101, because you are setting a limit order, if suddenly the price goes up very quickly or with a gep even, then you may not be given a position. But this is with a limit order and it is better to check with the broker. There are also warrants in which you can adjust the price range, for example, from 101 to 103, and at a sharp price jump, it is possible for you and would not give a position at a price of 101, but perhaps 103 would get.
