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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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3answers
177 views

Would a market buy order execute at a ridiculous ask price?

I was looking at a Vanguard ETF after the market had closed. The ETF usually trades in the 80 dollar range. I was looking to put in a market order for some shares that would execute the next morning ...
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3answers
109 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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3answers
190 views

Is there benefit in waiting for a stock market to open?

I am planning to purchase shares of a particular company that produces electricity using renewable wind power. The share price after market closure yesterday was 13.60. The price has been remarkably ...
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1answer
167 views

Can market orders execute at an absurd price?

When I write limit orders for securities that have a low trading volume, I normally ping the brokerage API to see what the current ask price is. However, when I was looking at a specific stock I ...
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1answer
52 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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3answers
206 views

Market Order executed at higher price than market price

On the 9th of January, while the US markets were closed, I placed a market order on GPRO (nasdaq) The next day, I noticed that my order was executed at $6.10 at the market opening, 9:30am (ET) ...
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2answers
62 views

buy to open + sell to close VS buy to open + sell to open end result difference

Regarding options and assuming same strike price, what is the end result difference, other than increasing the open interest and potentially requiring more margin, between buy to open + sell to ...
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1answer
151 views

What happens if a market order is not fulfilled completely?

In trading, if a market order is not fulfilled completely then what happens to remaining unfilled quantity?
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1answer
112 views

Market makers role

I'm trying to understand the role of a market maker, so the best bid and offer depends on where orders are resting, and these orders are from retail investors or institutions or whoever, why is it ...
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1answer
113 views

What is market order's relation to bid ask spread?

Say the bid ask in one scenario is 100/101 and in another scenario it is 90/98 ( hypothetical, for the same stock ). I want to hit a market buy order. In the second case ask is lower ( 98 ) but the ...
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1answer
97 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
589 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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2answers
138 views

How do exchanges handle overflowing market orders

Say that I observe the following market (a simplified limit order book with only limit and market orders): Bid | Price | Ask | 100.75 | 10 | 100.50 | 40 20 | 99.40 | ...
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0answers
35 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
71 views

Which market orders to meet this recommendation : 'Take a position on the purchase of the fooBar share, protect your capital by placing a stop'

I'm just getting started in the process of learning how to trade. I just wanted to know how should I interprete the following sentence : "Active investors will take a position on the SYNERGY share ...
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1answer
164 views

Can a stop loss order be triggered by random price?

Here's a real-world example: I had a position in a stock held overnight with a stop loss order at 45.20. Next day the stock opened at 45.60 and made a low of 45.50 within first 5 minutes of trading. ...
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4answers
166 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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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
439 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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2answers
140 views

What causes stock price to differ from the real time data?

Zero-commission and discount brokers such as 'Robinhood' can be rather misleading when placing orders. Orders are often filled with a slight change in the price, relative to free real time quotes ...
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2answers
321 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
534 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 ...
3
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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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2answers
844 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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3answers
844 views

What is the fair value of a stock given the bid and ask prices? Is there such a relationship?

I have often read that the fair value of a stock is the midpoint of the bid and the ask price. That means if bid is 100$ and ask is 101$ then the fair value of the stock is 100.5 $ and if I put in a ...
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1answer
579 views

What does it mean to settle a trade between bid and ask? [duplicate]

I was watching some sample data from a time & sales window (the tape). There was a "Remarks" column with the comment: Between Bid and Ask. What does "Between Bid and Ask" mean? How can a trade ...
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1answer
171 views

How to enter an iceberg order on an online brokerage web platform

On my order entry screen (my broker is questrade), I see a field called 'Iceberg'.I looked up 'Iceberg' and apparently it is some kind of mechanism to hide large orders by breaking it into parts. What ...
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1answer
6k views

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
501 views

Difference between limit order book and level 2 quotes

Is there any difference between 'Level 2 quotes' and 'Limit Order Book'? Are they different words describing the same thing? i.e the buy and sell orders that are queued up with different market makers ...
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1answer
325 views

Bids and asks in case of market order

Suppose that person A places buy market order with quantity 1000 of firm XYZ. Now in the market there only are various asks of quantity: quantity 100, quantity 2000, quantity 1000. Each ask has ...
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6answers
31k views

Foolish to place orders before the market opens?

I was wondering if it is unwise to place orders for stocks/ETFs before the market opens. I am almost always buying to add more to existing positions. I don't have any time during the day to make ...
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1answer
1k views

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 ...