Execution price when the trading price jumps over the limit price for a previously submitted sell order
What happens if you place a limit order above market price?
A buy limit order only executes when the market price of the stock is at or below the order’s limit price. So, generally speaking, if you place a buy limit order with a price that’s above the market price, the order will execute (perhaps at a better price).
Why did my limit order execute at a higher price?
If you place a limit sell order at 180, since there is a bid to buy at 185.35 your order will get sold at 185.35. Since selling at Rs. 185.35 means you are getting Rs. 5.35 more than what you are asking to sell the stock.
Why is my limit order not executed even when the last traded price has reached my limit order price?
Why doesn’t my Limit order execute sometimes even if the price shows on screen? The limit order doesn’t sometimes execute even if the stock reaches the limit price because the orders are executed on a ‘first come, first serve’ basis, i.e. queue system on the exchange.
What happens if a limit order never reaches the limit order price?
If the stock never reaches the limit price, the trade won’t execute. Even if the stock hits your limit, there may not be enough demand or supply to fill the order. That’s more likely for small, illiquid stocks.
Why did my buy limit order not execute?
A buy limit order will not execute if the ask price remains above the specified buy limit price. A buy limit order protects investors during a period of unexpected volatility in the market. A market order prioritizes speed of sale, above the price of the security.
Why did my stop limit sell order not execute?
Also, once your stop order becomes a limit order, there has to be a buyer and seller on both sides of the trade for the limit order to execute. If there aren’t enough shares in the market at your limit price, it may take multiple trades to fill the entire order, or the order may not be filled at all.
Do limit orders automatically sell?
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 limit price or higher. A limit order is not guaranteed to execute.
How long does it take for a limit order to execute?
Limit orders guarantee a price, but you may not get filled until the stock price reaches your limit. Once orders are filled, they can take an additional couple of days to go through the clearing and settlement process, although you’ll see them in your account pretty much right away.