13

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 ETFs Markets can be unpredictable very early and very late in the day. It’s not unusual to have a rush of orders at the open or close, which can lead to ...


12

The purpose of a market order is to guarantee that your order gets filled. If you try to place a limit order at the bid or ask, by the time you enter your order the price might have moved and you might need to keep amending your limit order in order to buy or sell, and as such you start chasing the market. A market order will guarantee your order gets ...


6

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 what mostly happens: Large banks and brokerages trading with their own money (we call it proprietary or "prop" trading) will have a number of limit (and other, ...


5

I don't have all the answers. On a illiquid stock, such situations do arise and there are specific mechanisms used by exchanges to match the order. It is generally not advisable to use market order on illiquid stock. There are lots of different variations here. I guess this comes down to specifications for individual exchanges, but I'm wondering if there'...


5

What you are saying is a very valid concern. After the flash crash many institutions in the US replaced "true market orders" (where tag 40=1 and has no price) with deep in the money limit orders under the hood, after the CFTC-SEC joint advisory commission raised concerns about the use of market orders in the case of large HFT traders, and concerns on the ...


5

I think it all boils down to which is your priority. if it's a limit order you are being guaranteed that you will never pay more than this amount but you are not guaranteed of getting the stock if it's a market order you are being guaranteed (well, in a way) of getting the stock but u are not guaranteed of getting it at the ask price So it all ...


4

None of the above. The fair value is a term used to describe an analytical result of projecting the company's future dividends and profits into a present value. Such estimates are published by the likes of Morningstar, S&P and Value Line. It is quite common for a stock to trade well above or below such estimated fair values.


4

The SEC reference document (PDF) explains order types in more detail. A fill-or-kill order is neither a market order nor a limit order; instead it's something in between. A market order asks to be filled at the best available price, whatever that price might be when the order gets to the exchange. Additionally, if there are not enough counterparties to ...


4

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 price may never hit your limit and keep trading away from you. You'll either spend a lot of time amending your order or sitting around wishing you'd amended ...


4

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. Market orders are typically not a great idea because if you're buying thousands or tens of thousands of shares this can mean a large swing in cost if the market ...


4

The real time price you are seeing is the last traded price, when you buy or sell sell you move the market (probably by the tiniest bit) by adding volume to one side of the trade book. The price you get is the price at which the person selling to you is willing to sell to you and for stocks, depending on direction and liquidity, this will almost definitely ...


4

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 another market order are a bit complicated and depends on whether there are limit orders in the book on the side of your market order. In many markets you can ...


4

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 executed would be around 80. But this can happen and does happen on illiquid stocks. You will see limit orders at very low buy or very high sell price. There ...


4

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.


3

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 or current price. However, this is not very realistic. Usually there is a spread between the bid and the ask price and the reason is that market makers are ...


3

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 above buyer wants to purchase at lower price and seller at higher price, this information will be available in Market depth, let's consider there are 5 buyers ...


3

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. The buy stop order will triger and be traded once the price reaches 43.90or above. At this point both the stop loss market order and the stop limit profit order ...


3

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 shares at any price". The problem is that the price you receive will not be the best price around. Your broker likely receives money to send the order through ...


3

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 best to let market makers get up and running before allowing your order to flow into market.


3

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 £1000 if they buy 1 coin. While an offer is being placed, it can cross with offers in the other direction if the rate is equal to, or better for the placer than, ...


3

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 the market. I assume that Canada follows the same convention. If so, that would mean that with VE having a volume size of 1 x 11 then 1,100 shares are ...


3

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 U.S. I suspect that today is the ex-dividend date for your ETF and that there was a distribution. When that occurs, the previous closing price is reduced by ...


3

A brokerage web site isn't a market maker. Brokers are intermediaries that buy and sell securities for an investor/trader. Market makers tend to be large banks or financial institutions that provide market liquidity. You lack a fundamental understanding how trading occurs on stock exchanges. Per your example, if Bob wants to buy at $100 and Sarah wants to ...


3

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 (slippage). Suppose you have backtested a strategy with trades at reported daily closing prices. As long as your orders are small compared to market volume, you ...


3

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 trade at the ask. A market maker's posted quotes are not some fixed in stone price that you are forced to accept if you want to buy or sell a security. Any ...


3

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. the price that the latest transaction took place at). When markets are closed (after-hours, weekends, or holidays), the price you see is usually the closing price ...


2

Fair value can mean many different things depending on the context. And it has nothing to do with the price at which your market order would be executed. For example if you buy market, you could get executed below 101 if there are hidden orders, at 101 if that sell order is large enough and it is still there when your order reaches the market, or at a ...


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