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No, the broker can just not execute the limit order. There's never downside for the market makers.
by klipt 11y ago
No, the broker can just not execute the limit order. There's never downside for the market makers.
- yummyfajitas 11y agoYou are confusing "accept a limit order" with "purchasing a call option". Once you've accepted the order you are legally obligated to deliver in T+3 days. If you fail to deliver you pay big penalties, your broker shuts you down, all sorts of bad things.
- klipt 11y agoIn my experience with brokers like Schwab, placing a limit order is no guarantee of execution, even if the market price reaches the price specified in the limit order.
- tptacek 11y agoI think you're again confusing terminology; you're referring to placing an order, which is obviously no guarantee of execution, and Chris is referring to what happens after your order is executed.