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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How do exchanges match limit orders?

Say a security has been trading at under $20.10, and there are limit orders selling at $20.10 and $20.21. Then Simon issues a limit order to buy at $20.21. According to this explanation, Simon would ...
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Arbitrage with a limit order

The usual notion of arbitrage involves putting two market orders at different exchanges. These orders are immediately executed at different prices and I earn the price difference. Is there a special ...
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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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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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Choosing the limit when making a limit order?

I am a long term investor that periodically (several times per month) adds to existing positions. I usually place my orders for stocks before the market opens. I use limit orders primarily to protect ...
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What price is a limit buy and a limit sell order settled at?

A market has an existing limit buy order at $1.00. The market then receives a limit sell order at $0.95, what price is the transaction settled at?
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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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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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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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1answer
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How to understand adding or removing “liquidity” in stock markets with market/non-market orders?

Most explanations on this topic about adding and removing liquidity simply state that market orders remove liquidity and limit orders add liquidity. Is it possible to have a bit more elaborate ...
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1answer
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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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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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How to sell option with no volume

If there is no volume on options you want to buy/sell, should you do any transactions with those options? Here is my scenario: I recently bought two puts of an industry ETF. A few days later it ...
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TD Webbroker.ca did not execute my limit sell order even though my stock went .02 over limit

On March 18th 1 AM I placed a simple limit sell order without constraints at $94.64 for 2000 shares of a NYSE listed refinery stock. The daily high went through $94.64 and into $94.66 – .02 above my ...
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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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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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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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How to use a stop and limit order together?

If I own a stock that trades at 100$, and I want to sell the stock if it either goes to 95$ or below and also if it goes to 105$ or above, is it possible to do so? Do I need to use a stop order or a ...
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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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1answer
230 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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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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Will a stop-limit-on-quote execute in extended trading?

As an example, if I have this order: Buy 500 Shares of XYZ at Limit Price of $5.00 and Stop Price of $4.50. Duration of this order is Good until Cancelled. Will that order execute during extended ...
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Protecting onself from steep losses with a stop-limit sell order

I would like to get some feedback if there are any obvious flaws with this strategy of limiting my losses when there's a steep drop in stock price due to negative report after hours. Suppose I own ...
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Display vs Non-Display Limit Orders

In an effort to better understand how market exchanges work, I was attempting to learn how orders get executed on NASDAQ. The following quote is from their website (click here to view): NASDAQ ...
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Will a stop order get triggered if the floor is hit and trading is halted?

Let us say I have bought a stock XYZ at $100 and I have a stop loss order at $95. Some bad news comes out suddenly, or maybe a flash crash happens, so the price drops from $100 to $90 and trading gets ...
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2answers
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How are limit orders executed at market open when the bid price is above the ask price (negative spread)?

In what order and at what price would these orders be executed? Consider the case that both the buyer and the seller submitted orders to their brokers while the market was closed. It seems logical to ...
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1answer
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Are bid and ask prices set by the market directly, or by the market makers?

I believe the answer is the latter, but I'm looking for more detail, hence the question. For low volume stocks and options I have bid lower than the current bid, and while usually my limit order isn'...
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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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3answers
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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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2answers
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Is the best ask price the ask at the “top” of the order book? What is the “top” of the book?

In the level 2 book from BATS with live data, the right hand part of the page shows the best Bid(s) and the Best Ask(s). Example: How come the best Ask is not at the top of the book? From what i ...
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4answers
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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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1answer
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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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1answer
172 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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1answer
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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
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How does exchange match multi-leg option orders?

Suppose I submit an order to open an iron condor or some other multi-leg stock option spread with multiple buys and sells. For example, if SPY is trading at 275, I might want to: sell a call at 290 ...
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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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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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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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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
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How to estimate the average cost-per-share of a not-very-liquid ETF purchased with a market order?

I'm a Canadian resident and a few months ago I bought a US-listed Vanguard ETF of European stocks (VGK). There was a Canadian-listed version of this ETF (VE), but I chose the US-listed one because the ...
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1answer
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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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1answer
282 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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4answers
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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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3answers
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Stop Limit Order to Sell with Limit price higher than stop

Say ABC Inc. is trading at 10. I put in a stop limit order at 9.50 with a limit price of 10.50. This doesn't make sense does it, as no one would be buying at 10.50 when trading at 9.50? I would just ...
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1answer
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What happens when the price goes lower than stop limit

Suppose Stop price is 45 and Stop Limit is 46. What happens if the price went far lower than 45 and never recovered? I suppose I would lose huge because the order would only get executed at 46 or ...
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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
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Trading Order Type to Immediately Buy as Much as Possible of an Asset for a Given Amount of Money

Say I'm interested in buying 300 USD worth of stock A and 700 USD worth of stock B and let's say, for the sake of argument, that it's possible to buy a fractional amount of those stocks (i.e. I could ...
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1answer
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Bid and ask… no limit orders [duplicate]

So I'm understanding that the bid is the price buyers are willing to pay for a stock, and ask is the price sellers are willing to sell for. But what if there are no limit orders... only market orders....
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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
102 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 ...