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You 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 y
by yummyfajitas 10y ago
You 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 10y 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 10y 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.