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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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Converting Market Order to Limit Order

Every hour my algo decides whether to trade or not. Given the close of a candle, say my algo signals a buy, I can immediately place a market order and hence would be charged taker fees. When the ...
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Over 10% difference between bid price and current price for SLP to buy should I place limit order between these two prices?

If there is a current price $22.25 and the bid price is currently $19.90. That seems like a big difference. Should I be concerned if I want to buy this stock? Should I place a limit order at a price ...
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3answers
125 views

How to set a sell limit order that will actually execute?

I'm having trouble getting a good answer to this with Google. I'm also new to this. Haven't actually tried it yet. I have several hundred shares of a security that I'm hoping to sell. Let's say bids ...
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3answers
186 views

What's difference between LIMIT and STOP orders for entry?

After re-reading the descriptions same and again, I can't clearly say, what's the difference between STOP and LIMIT orders actually. example: i.e. Stock price is at 5.60, and I want to trigger ...
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111 views

Is market order a special kind of limit order?

Is market order a special kind of limit order: is a buy market order equivalent to a limit order with very high (e.g., 10x trading price) buy price.
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545 views

My stock's limit sell order should have filled at a higher price

New investor here, using the Robinhood platform. I quickly learned that placing market orders never really nets you what the app indicates; limit buys and sells fix that. Typically, I assume, limit ...
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1answer
66 views

How is the implementation of stop-limit done?

I am building a cryptocurrency exchange, and having some trouble with the implementation details for a stop-limit order. I have a few scenarios I would like clarification on, along with any useful ...
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240 views

Is there an automated trailing stop limit order?

Let's say I have a stock trading at $100. If it gets to $120 I want to have a trailing stop limit order initiated with a trailing amount of $1 let's say. I only want the trailing stop limit to take ...
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1answer
55 views

Functional Question About Maker/Taker Markets

I have a question about the workings of a maker-market. This works for basically any product, but the example is quite nice for cryptocurrencies (due to their high volatility). Consider a (fictitious)...
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23 views

RBC DI, do you get charged commission on a non filled limit order?

I placed a limit order, do I only pay commission if the order is fulfilled? What if only part if filled? I am with RBC Direct Investing
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1answer
222 views

Why did my stop limit get executed?

I had a security trading at 2.10, i set a stop limit to trigger at 2.05 and sell on limit at 2.00 to incur a maximum loss of .10 per share. The security reached 2.05, I went to check my order status ...
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3k views

Why use a stop-limit order instead of a limit order?

"A limit order is an order to buy or sell a stock at a specific price or better. A buy limit order can only be executed at the limit price or lower, and a sell limit order can only be executed at the ...
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1answer
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How to place an order which will book profit at 400 also will book profit at 378?

I have 50 shares of rain industries i bought it at 357 now the market price is 378.45, i would like to sell it if it goes below 378 also if it reaches 400. how can i place such an order? should i use ...
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2answers
2k views

Can I place a stop loss and a limit sell at the same time?

Let's say I bought 100 shares of company XYZ at 10$ a share. I think that the market price will rise to 12$, so I would like to sell ALL MY SHARES at 12$ (that's the limit sell order). On the other ...
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51 views

Best price or exact match, How market order would be matched when all are limit orders? [duplicate]

Suppose, there is a Limit sell order with Limit Price : 21, Qty : 21000 then another new Limit sell order placed as below Limit Price : 20, Qty : 200 Now if a new limit buy order placed as below,...
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40 views

What order types should I execute? [duplicate]

If I would like to buy FB only if its price rises to $181, and then only if I can buy it for less than $183. What order should I submit to accomplish my objective? Please explain consistently your ...
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19 views

What would be the filled cost when limit order gets executed? [duplicate]

Suppose, User A has Buy limit order with Rs.15 and User B has sell limit order with Rs.10, Then what would be the filled cost for the trade? Will it be 10 Rs or 15 Rs?
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106 views

What happens when there are no Limit Orders?

If we assume a situation where all the Limit Orders for a stock have been executed. The Market Price is say $100 for the stock. No further Limit Orders come in, either for Buy or Sell. However, the ...
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2answers
915 views

Help Understanding Market/Limit Orders and Bid/Ask Price

Kid gloves... this might be a stupid question, but I haven't found a real clear answer to this. So I understand that market orders are orders to execute at current market prices and that the price ...
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1answer
190 views

Limit and Stop Market Buy Order , which will get activated first?

If we have a One cancels Other (OCO) order strategy , this is a strategy placing order, where you can place 2 orders, and when one of them gets filled, then the other will get canceled, and vice ...
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36 views

How can a security/commodity price plunge from the order book's perspective?

There were many cases, when investors enter a huge sell market order (maybe accidentally which results in a flash crash), and the underlying security/commodity price decreased multiple percents in ...
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1answer
199 views

trailing stop loss in slow price decline

If I set the trailing stop loss as 5% based on Last. Is the stop price updated every time Last is published? e.g. If the current Last is $100, then current stop price is $95; when the next Last comes, ...
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1answer
142 views

Can a limit order be fullfilled with a better price than offered? [duplicate]

When a limit order is fulfilled, is it always at the specified price? In other words, is it possible that a buy (sell) order will be completed with a lower (higher) price?
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109 views

Changing the price in a limit order

I have a question about a limit order, or any non-market order for that matter, like a GTC limit order. My question is that, if I change the price, or quantity, of a limit order, will the system ...
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1answer
103 views

How does a limit order work for a credit spread?

In the stock market, a limit order goes in the order book saying Someone is willing to buy 5 shares of this stock at $5. I understand the same would be true for an options order at a particular ...
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1k views

Placing limit order and stop loss on same stock at same time

Can I place an order so that my account will buy 100 shares of stock xyz if it opens below my limit order but also place a stop loss on the same order so that I can contain my losses if the stock ...
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4answers
179 views

Would it be considered appropriate to use a market order for my very first stock trade?

I am a newbie investor and have a read a few books on long term stock trading and I'm ready to execute my first trade. I've been researching when to use limit orders vs when to use market orders and ...
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1answer
77 views

Limit order precedence when there are two sellers [duplicate]

I am trying to understand the precencehow limit orders are fulfilled. Example: Let's say on a given day only Alice and Bob send a sell order for Apple stocks. Alice, sell APPL at least: 450 Bob, ...
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3answers
2k views

Supply & Demand - How Price Changes, Buy Orders vs Sell Orders [duplicate]

I'm just a little confused with regards to price change. So for every buyer there must be a seller. How does price actually change? I hear it's because there are more buy orders than sell orders or ...
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1answer
113 views

What is the farthest someone would likely be stopped out from their stop loss without setting a stop limit?

Basically just trying to get an idea for how safe/dangerous that would be
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1answer
522 views

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? ...
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2answers
1k views

Large BUY LIMIT orders' effect on a stock's price

Let's say a Nasdaq stock is trading at $50... Can a very large (outstanding) BUY LIMIT order at $2.00 pull the stock price down? Is this a legal/common practice? (I've noticed this being done when ...
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1answer
1k views

Set different trigger and sell price for Trailing Stop Limit

I'm wondering if it's possible to set a Trailing trigger price that is different from the sell limit order price. Say I have a stock worth $100. I want to sell the stock at around -10% trailing ($...
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471 views

How are unmarketable market orders (other side of the order book is empty) matched with incoming orders? [duplicate]

Note: This question is erroneously marked as a duplicate. It concerns a very specific situation with unfulfillable market orders in very illiquid markets, one that no other discussion here has covered....
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343 views

Can a buy market order be matched with a sell market order in Forex trading?

Should Market-orders be always matched with Limit-orders with best price on the opposite book? Or is there a case scenario where a Market-order could be matched with another Market-order? At which ...
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1answer
1k views

What is the final price if the bid price exceeds the ask price in an order driven market? [duplicate]

Let's assume a very simplified situation. There is only one seller asking for 10$ and there is only one buyer bidding 20$. At what price would the transaction go? Some answers say it won't, because ...
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97 views

Is there a Limit Order to buy long if the price RISES (not falls) to a specific value?

I trade with Interactive Brokers. I want to buy at the Close in one of the following scenarios. The scenario depends on the indicator that I'm using. First scenario: Assume that the price is ...
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305 views

Is it possible to improve stock purchase with limit orders accounting for volatility?

As a retail investor that puts a certain monthly amount into equity, I was wondering which is the best way to proceed when purchasing stocks. By best I mean the one that would allow me to purchase the ...
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1answer
3k views

Is it illegal to buy stocks at a low price during a flash crash using a low GTC order?

We've seen several flash crashes in the past few years, and I suspect algorithms are some of what's behind these (see this as an example). In a short period of time, an exchange will suddenly see ...
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1answer
573 views

How are market orders matched? [duplicate]

I'm trying to gain some insight into how orders on an exchange are matched to design a proof of concept matching system. Am I correct in assuming market orders are immediately executed against the ...
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1answer
160 views

Effect of a mistaken limit order on market price

If a sell limit order for a very small volume was entered mistakenly at a very low price, would it get executed and would it affect the market price ? eg: The current market price for FOO is $500 ...
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1answer
4k views

Price/Time priority order matching - limit order starvation

Under price/Time priority order matching, market orders get priority over limit orders. How is starvation of limit orders prevented? By starvation, I am referring to the case where limit orders don't ...
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637 views

How to interpret a trailing stop limit order

In this sell order, what do the values under Trailing and Limit Offset mean? Means it will lag the market by the value in 'Trailing', but what is this limit offset?
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915 views

FOK order type: can they be market or limit orders?

It is mentioned in SEC web page: A Fill-Or-Kill order is an order to buy or sell a stock that must be executed immediately in its entirety; otherwise, the entire order will be cancelled (i.e., ...
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1answer
889 views

Vanguard limit order vs stop order in a buy scenerio

I just opened an account on Vanguard and am learning about the different order types. I am having trouble finding the difference between a limit and stop order in a buying situation. Looking at their ...
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2answers
871 views

When to use a stop limit order over a stop order

I understand that a stop limit order is basically a limit order when the market price reaches the stop price. But I am unable to figure out when to use this kind of an order? For example, if I own ...
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2answers
301 views

Buy the open and set a 1% limit sell order

If I find that for stock X, for past 5 years of daily OHLC data, 80% of the time, the Open was at least 1% lower than the day's high. If we find that in this 80% of the cases, the high was reached ...
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1answer
141 views

Putting a calendar spread as a limit order

If I want to put on a calendar spread as a limit order at interactive brokers, am I allowed to specify a limit price for the spread, or do I need to specify limit prices for each of the individual ...
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128 views

Is this a Trailing Limit if Touched Order or something simpler?

This question was previously asked by me here: Understanding a Trailing Limit if Touched Order . Frankly I am still having a hard time getting it so I thought I'd ask a real world example. I bought ...
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427 views

Why would we need a “stop-limit order” for selling?

What is the practical usage for selling with a stop-limit order? If we reach a stop-loss point we are likely to sell to protect from a bigger loss. What situation would need to add a limit order on ...