Questions tagged [limit-order]

A limit order is an order placed with a brokerage to execute a buy or sell transaction of a set number of shares and at a specified limit price or better.

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Market sell order executed at a higher price than existing limit order in a very illiquid market for an illiquid stock

First off, please bear in mind that this is a very rare scenario for a very illiquid stock in an illiquid market. Let's say the lowest ask price for the stock is 10.00 atm and there's no bid order ...
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Does it make sense to repeatedly increase your limit order price in small increments until your order fills?

Whenever I buy a security, I always use a Limit Order. Just to be safe, I input a price just below the Bid Price, e.g. 21.80. Why? In case the spot price dips suddenly! See below. This cheap trick ...
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Order Book ASK - which BUY orders are serviced first at cryptocurrency exchange

New to trading. I came across the concept of an "Order Book". MY UNDERSTANDING My understanding (when going LONG) is that a trade ONLY takes place if the BID Amount >= the ASK Amount - ...
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How big participants consume liquidity

I’m currently studying order flow, and one thing I see a lot is that big participants or institutional traders don’t use market orders in order not to get slippage, instead they use limit orders ...
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Does this limit order book (depth chart) look legit?

I am reconstructing the limit order book on Binance. I get a snapshot at a particular time and update this snapshot based on the updates for each level that come every 100 ms from the exchange. Most ...
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What metrics exist for summarizing an order book?

For markets with an order book (let's say limit orders only), what scalar metrics do people use when describing a situation? You can give a full depth chart of course, but short of that is there ...
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Can I place limit orders (like limit, stoplimit, trailstop..) in bonds (treasury bonds, municipal and other types of bonds)?

Can I place sell limit orders (like limit, stoplimit, trailstop..) in US bonds (treasury bonds, municipal and other types of bonds)? or it is only market orders?
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What happens if the volume of two orders does not match?

I see the stock market as a list of orders which have a type (buy-limit, sell-limit, sell stop-loss, ...) a volume, and a price. Some order types have more parameters, but for simplicity I'd like to ...
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Stop limit orders are being filled immediately

Got an option trading up at $0.40, spread is $0.34B x $0.45A, so I went to set a stop limit on the order at $0.35, but the broker popped up a message that said: "Your stop price is at or above ...
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6 answers
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How is limit order handled right at market opening?

Consider the situation I want to buy shares of a company. Further, consider that the share price was at x when the market closed at the end of the day. Now during the market closure, I place a limit ...
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Will orders be adjusted on the ex-dividend date if the stock "will not be quoted ex-dividend"?

Consider a stock that will soon pay a dividend, but the dividend announcement says that the stock "will not be quoted ex". Will the prices in the order book be adjusted on the ex-dividend ...
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Placing Orders To Get the Best Price

I wondering what is the best order type for this situation: STOP MARKET or STOP LIMIT. I am also using a software called Tradingview that allows one to get Alerts when Price reaches a certain level. ...
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Execution price when the trading price jumps over the limit price for a previously submitted sell order

I placed a limit sell order with a price of $11 on a stock yesterday, when the stock was trading at $10. Today, the price jumped up to $12 right at the open. I was worried my order would be filled at $...
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What kind of order review does TD Ameritrade do on a simple and small buy limit order for a stock traded on the NASDAQ?

I was surprised to see that one of my simple and rather small buy limit orders for a stock traded on the NASDAQ got placed under review for 23 seconds before it got executed (small ~= 30kUSD, which ...
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Does the difference between a marketable limit order's price and the bid-ask price influence the priority of the order?

A stock is $10 bid and $11 offered. Alice places a marketable buy limit order with a limit price of $12 per share. At exactly the same time, Bob places a marketable buy limit order with a limit price ...
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Choosing the proper order type to preserve profits on crypto exchanges

I bought ETH at approx. 1700. It went to 1800. I wanted to preserve my gains and created a LIMIT order. My thoughts that if the price "came back the other way", then it would hit the LIMIT ...
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Limit order matching - same time

Given these two orders with the same size: Buy x for 20 Sell x for 15 What price are they matched/should they be matched if we have no time priority? Are there any market standards to solve this ...
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How does Limit order book works in the following hypothetical scenarios? [duplicate]

I’m a beginner to trading and reading some stuff about Limit & Market orders. I’ve thought up some scenarios and I would like to confirm on how the underlying order book mechanism deals with them. ...
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14 votes
6 answers
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Why don't traders place limit orders at all prices to be first in line when the price moves?

In markets with price-time priority, why don't traders enter limit orders at all prices, so that they could be first in line when the price moves? For example, if the current best bid is $10 and the ...
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Why didn't my buy limit order become the highest bid?

I am trying to buy a stock that is $307 bid and $312 offered. I placed a buy limit order for 1 share at $307.10. However, the best bid remained at $307.00. After an hour, the best bid is still $307.00....
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What is the relevance of price-time priority when each stock trades on many stock exchanges?

The majority of stock exchanges seem to arrange limit orders by price-time priority. This makes sense when each stock trades on only one stock exchange. If my limit order is the first in line on that ...
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Can a Trailing Stop Limit order extend the upside?

I'm looking to place a trailing stop on a stock IF AND ONLY IF the stock reaches a certain profit level. My goal is to effectively place a sell limit order, but to extend the upside if the stock ...
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What type of orders fit my strategy in a way that two triggers might be needed?

As a newbie on trading cryptocurrencies, I found Stop-Limit Order does no longer fit my strategy in a situation like this: Ater a huge price pump, the market price has stabilized at around $450 now. I ...
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Can a stock's Bid price be lower than the price of any active Limit Buy order?

Earlier today I decided to place a Limit Buy order for some stock for a target price somewhere in the middle of the Ask-Bid spread. Since the price of my order was higher than the Bid, I would have ...
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Whose limit gets prioritized?

Imagine a stock with a high spread with only 1 buyer and 1 seller. If the stock is $1, and the seller ask is $1.10, and I am the buyer. And assume I do not know the book for the stock. If put in a ...
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Use-cases for stop-limit order where stop price is lower than limit price on Sell Order

I understand the typical use-cases mentioned on investopedia etc. for sell orders using stop-limit orders where the limit price is lower than the stop price e.g., Type: Sell Current Price: 50$ Stop ...
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1 answer
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Limit Sell and Stop Loss Different Quantities

I own 100 shares of a stock at $40.00 per share. I would like to sell all 100 shares if the price falls below $36. But, if the stock were to double to $80 per share, I would like to sell 50 shares ...
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Market Makers & Takers

I'm asking this question out of curiosity as a person who has never traded before. I notice exchanges generally reward market makers while taxing takers with a fee. If everyone in an exchange chooses ...
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Which limit order will be filled first?

I'm trying to understand which of the following limit orders would be filled first. Let's say for argument's sake stock X is $11.00, person A makes a limit buy for 1 stock X at $10.00 at 10:00am ...
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Is front-running allowed under PFOF?

I'm reading this introduction to PFOF. https://centerpointsecurities.com/payment-for-order-flow-guide/ It claims that those buying flow are allowed to front-run that flow. For example, if a customer ...
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3 votes
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Priority of out of hours sell limit vs market order

Say a stock price is $10. I own a number of stock and one evening decide to sell because of bad news, so I place an order outside of trading hours, anticipating it will execute the next morning. ...
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What happens to the difference between the limit order and executed order

Say I place a limit order at 100$ for IBM using Robinhood. While waiting for it to be executed, the price goes down, and the order is executed at cheaper than my limit, say 99$. My question is, what ...
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2 answers
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Stop limit sell order doubt

I have a question about stop limit sell order. Let’s say I own 10 ABC stock @ $100 each. I would like to place the following stop limit sell order Current ABC stock price= $120 Stop price = $180 Limit ...
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Should I Use a Limit or Stop Limit Order to Sell a Position Once It Reaches Price Objective

I have a position in stock options in my account at Schwab and I want to submit a GTC order to sell half the position when it reaches my price objective (or better). It seems that I can submit either ...
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1 answer
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What exactly are Level 2 quotes, and how are they related to the limit order book and "market depth"?

I am trying to understand the definition of "Level 2 quotes" and their relationship to the "limit order book" and "market depth" ("depth of market"). I have ...
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What are the risks of placing limit orders on illiquid securities without knowing the Level 2 quotes?

I only have access to Level 1 quotes (best bid and ask) for some illiquid securities. Suppose I place a buy limit order on such a security based only on the Level 1 quotes. What are the risks I could ...
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Difference between depth of market and the limit order book

In trading terminology, is there a difference between "depth of market" (DOM) and the limit order book? I suspect that they are the same because a limit order book shows the "depth"...
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Robinhood sell option not executing

I bought a few CCL calls and I am looking to sell. I placed a "limit sell" at consistently 10-20% under market price (there are large fluctuations), but it is not executing (1 day has passed)...
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Can I use limit orders to be triggered after a stock splits?

I recently had an issue where I was trying to get a couple of shares of a stock about to split. I'm a micro-investor, so I was only able to afford shares after the split, and not enough to buy a whole ...
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Why don't "buy uptick" and "sell downtick" orders exist?

I am learning about tick-sensitive orders. I know that there are two kinds of tick-sensitive orders: Buy downtick order: can be filled only on a downtick or zero downtick price. Sell uptick order: ...
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1 vote
2 answers
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Price matching with Limit Orders

I have basic question concerning the stock market. I placed a Limit-Sell Order of 500 shares at $1.45 for Stock X while it was trading below that. Two days later I woke up to all shares being sold for ...
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Do stop orders get triggered by stock splits?

Situation 1: Suppose I have a stop-loss order in place, and the company's shares split 2 for 1. As a result of the split, the company's share price will halve. Will the stop-loss order be triggered? ...
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Can a market order be matched by another market order in stock trading?

I have found similar questions in this forum but those answers didn't specifically clear the fact.
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Do Institutions (large trading firms) use market orders?

It is well known that Institutional traders (Large trading firms, market makers) most of the time use LIMIT orders or Hidden limit orders. My question is, do they ever use market orders in their ...
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3 votes
2 answers
672 views

Limit order not executed despite price going below my limit

Yesterday I placed a limit buy order for 3 shares of ITIC (NASDAQ) @ $122.05. About 5-10 minutes later, a trade went through - 100 shares @ $122.00, while my order was untouched. How is that possible? ...
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1 vote
6 answers
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Schedule to sell a stock when it reaches a higher price (though not guarantee to sell it at that price)

Suppose I have a stock with price $30. I want to trigger selling it as long as it reaches $35 (even though it might be executed at say $34.7). Is there such an option in any brokerage (such an option ...
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what kind of exchange model is used in a typical large Stock Exchange?

So I have recently understood the meaning of a bid-ask spread and how market makers are involved in this process. However if I am not one of the lucky few 'members' of for instance the Amsterdam ...
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2 votes
1 answer
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Option limit order filled at better than previous bid price

I was trying to close out of a position today (buy to close - short call option) and had a limit order active all day long at 0.20. Near the end of the day I got anxious and raised my limit price up ...
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2 votes
1 answer
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Would a stop sell order execute if the stock suddenly dropped and recovered?

A few weeks ago I bought some Tesla shares at $908. I held them until Feb. 19 when the price went to $930, putting in a stop-limit order to sell at $915, but not below $900. Shortly after, the stock ...
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Price/time priority VS pro-rata priority

Could someone please explain to me the example in the image below? I thought I had perfectly understood the two mechanisms, but this example makes me doubt about that :
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