Skip to main content
14 votes

Foolish to place orders before the market opens?

This is an old question, but I had the same question and it still goes up high in Google searches. I found two sources online with the same option: From Charles Schwab Best practices for trading ...
Josh's user avatar
  • 241
6 votes
Accepted

Help Understanding Market/Limit Orders and Bid/Ask Price

Your logic breaks down because you assume that you are the only market participant on your side of the book and that the participant on the other side of the book has entered a market order. Here's ...
MD-Tech's user avatar
  • 8,955
5 votes

What is the role of a market-maker?

The role of the market maker is to make sure there is a bid and ask on a particular stock. That's it. The market maker ensures that there is a price at which you can buy and a price at which you can ...
farnsy's user avatar
  • 15.1k
5 votes
Accepted

Are there market makers in bonds market?

Bonds are not traded on an exchange like stocks, and so there are no "designated" market makers like for stocks, but there are some brokers that will buy and re-sell bonds to keep liquidity ...
D Stanley's user avatar
  • 136k
4 votes
Accepted

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

Difference between a limit and market order is largely a trade-off between price certainty and timing certainty. If you think the security is already well priced, the downside of a limit order is the ...
Peacock's user avatar
  • 436
4 votes

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

If you want to make sure you pay at or below a specific price per share, use a limit order. If you want to buy the stock close to the current price, but aren't price sensitive, use a market order. ...
jimmy0x52's user avatar
  • 372
4 votes
Accepted

What happens if a market order is not fulfilled completely?

In order-driven markets the order goes to the book and will be matched with either the next incoming market or limit order of the opposite side. The rules for the price when the market order hits ...
hroptatyr's user avatar
  • 1,762
4 votes

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

My question is would my trade likely have actually executed at that price in the morning In this specific example unlikely. The ETF is highly traded and the price in the morning when trade would get ...
Dheer's user avatar
  • 57.1k
4 votes

How did my market order not fill on TD webbroker?

The stock market closes at 4:00pm Eastern time. It was too late in the day. The order may be good for tomorrow. You should check that.
Bob's user avatar
  • 1,673
4 votes
Accepted

What is the difference between an Order and a Trade?

From what I understand, an order is an instruction to buy or sell something but trades occur where parties voluntarily agree to exchange one thing for another. Correct. A trade results from matching ...
nanoman's user avatar
  • 29.7k
3 votes
Accepted

Functional Question About Maker/Taker Markets

Once an order is on the books, it can only execute at the rate at which it was placed. So once an offer to buy 1 coin at £1000 is placed, whoever takes it -- however they take it -- is going to pay £...
David Schwartz's user avatar
3 votes
Accepted

What happens when there are no Limit Orders?

The obvious thing would happen. 10 shares change owner at the price of $100. A partially still open selling order would remain. Market orders without limits means to buy or sell at the best possible ...
NoDataDumpNoContribution's user avatar
3 votes

Help Understanding Market/Limit Orders and Bid/Ask Price

At any point of time, buyer wants to purchase a stock at lesser price and seller wants to sell the stock at a higher price. Let's consider this scenario Company XYZ is trading at 100$, as stated ...
Umesh's user avatar
  • 29
3 votes

Foolish to place orders before the market opens?

I do the same thing for the same reasons, except that I never use a Market Order. The Market Order Problem When you send a market order to your broker, you are saying "I want to by X number of ...
xirt's user avatar
  • 5,121
3 votes

Foolish to place orders before the market opens?

More on a technical note, but the spread on an ETF tends to be worst at market open and near market close. (assuming the ETF constituents are traded on a synchronous basis.) If possible, it's often ...
Peacock's user avatar
  • 436
3 votes
Accepted

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

You would place a stop buy market order at 43.90 with a stop loss market order at 40.99 and a stop limit profit order at 49.99. This should all be entered when you place your initial buy stop order. ...
Victor's user avatar
  • 21k
3 votes
Accepted

How to estimate the average cost-per-share of a not-very-liquid ETF purchased with a market order?

On U.S. equity markets, volume size represents round lots. Your quote for VGE is: $53.52 x $53.53 with a volume size of 542 x 134. That means that there are 54,200 x 13,400 shares available at ...
Bob Baerker's user avatar
  • 76.6k
3 votes

Trailing Stop Market Order getting Cancelled

I can't answer your question specifically because I'm in the U.S. and this is about a Canadian ETF and a Canadian account. But I can surmise what the reason might be based on what happens here in the ...
Bob Baerker's user avatar
  • 76.6k
3 votes
Accepted

Priority of out of hours sell limit vs market order

Are orders queued, such that a market order made later in the evening would get executed after my sell limit order? Yes and no. Orders are Queued - but there are passive and active orders. Market ...
TomTom's user avatar
  • 11.5k
3 votes

purpose of making an MOC order

With this type of order (market on close), you participate in a special "closing auction" rather than paying a bid-ask spread as with a normal market order. This can reduce trading costs (...
nanoman's user avatar
  • 29.7k
3 votes
Accepted

In over-the-counter markets, shouldn't price takers attempt to match each other's prices?

Yes, a price taker buys at ask price and sells at bid price and if the market maker is on the other side of the trades, he pockets the bid-ask spread. Note that trades means a trade at the bid and a ...
Bob Baerker's user avatar
  • 76.6k
3 votes

How is the price of stock decided in an order driven market?

But when we go to buy or sell, we get only one price or when we search price of a stock we get only one value. Which price is this and how's it calculated? It is usually the last trade price (i.e. ...
Flux's user avatar
  • 17.1k
2 votes
Accepted

Can a stop loss order be triggered by random price?

Typically this isn't a random order- having a small volume just means it's not showing on the chart, but it is a vlid price point. Same thing would've happened if it would've been a very large order ...
Aganju's user avatar
  • 37.7k
2 votes

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

Yes for every order there is a buyer and seller. But overall there are multiple buyers and multiple sellers. So every trade is at a different price and this price is agreed by both buyer and seller. ...
Dheer's user avatar
  • 57.1k
2 votes
Accepted

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

Because in the case for 100/101, if you wanted to placed a limit buy order at top of the bid list you would place it at 101 and get filled straight away. If placing a limit buy order at the top of 91 (...
Victor's user avatar
  • 21k
2 votes
Accepted

Market Order executed at higher price than market price

I am not sure specifically about nasdaq; however exchanges that allow overnight market order have a slightly different matching rule. Market orders have the highest priority. There could be ...
Dheer's user avatar
  • 57.1k
2 votes

Is market order a special kind of limit order?

A market order means that you are guaranteed for your order to be executed and a trade takes place, what is not guaranteed is what price you buy or sell at. A limit order is not guaranteed to be ...
Victor's user avatar
  • 21k
2 votes
Accepted

Is market order a special kind of limit order?

It may or it may not be. This is an implementation detail and it actually does vary by exchange. From a user's perspective, it is not. There is no sensible limit visible and expected. On the CME, ...
TomTom's user avatar
  • 11.5k
2 votes

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

Bid-ask spreads tend to widen after-hours when market makers depart. If you place a trade for after-hours execution, you need to be very careful as you may not be able to trade at a good price even if ...
nanoman's user avatar
  • 29.7k
2 votes
Accepted

Can market orders execute at an absurd price?

When after hours orders first came out some did trade like that until broker-dealers fixed their systems. This is a dummy value designed to prevent an actual trade. The only firm where there would ...
Dave Harris's user avatar
  • 4,277

Only top scored, non community-wiki answers of a minimum length are eligible