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Sure it's up 50% from the "reference price", but publicly for you and me retail investors we had NO chance at that gain. You'd have been super lucky to get som
by nodesocket 7y ago
Sure it's up 50% from the "reference price", but publicly for you and me retail investors we had NO chance at that gain.
You'd have been super lucky to get some shares at where it opened at $38.88 (12:08 EST). It immediately shot up to daily high of $41.95 which is most likely where retail trades would have executed at (assuming you used a market order, which you never should). Always buy with limit orders. See the following screenshot of the graph of today[1] of $WORK for reference.
[1] https://imgur.com/a/ULlMHMl https://imgur.com/a/ULlMHMl
- FartyMcFarter 7y ago> assuming you used a market order, which you never should). Yeah I don't get why market orders even exist. If you're doing something that usually costs thousands to millions, is it ever a meaningful benefit to saving a click or two and a few keystrokes? If my broker had an option to remove my ability to do market orders (sell or buy) I would immediately enable that.
- derefr 7y agoWould it still be called a market order if you were denominating the order in dollars-converted-at-moment-of-sale? I.e. "buy however many shares I would get for $500, I don't care how many or few that is at the time." That seems more useful, and still caps your losses, while offering something limit orders don't.
- tanderson92 7y agoThis is still a market order (ignoring rounding).
- TomVDB 7y agoI'm not a high frequency trader. When I want to sell (all highly liquid shares), I've made that decision on other factors than a 0.1% variation of the listed stock price. What I care about is that it sells. It's hold-over from the dotcom days when I saw colleagues sell options with a limit order just above the current listed price that never got fulfilled in an a constant down market.
- tylerapplebaum 7y ago> Yeah I don't get why market orders even exist. Have you ever needed to exit a trade in a hurry? Or been buying something on the way up?
- evanpw 7y agoA marketable limit order is strictly better: "I'll sell at the best price available, but no more than X% worse than the current price" vs. "I'll sell at literally any price". In most cases, they give identical results, except in certain catastrophic cases where the limit order will save you (e.g., flash crash).
- deanmoriarty 7y agoI have traded literally several million of dollars (especially counting all the tax loss harvesting I’ve done) over the years as a private investors in highly liquid index funds, and always use market orders. I don’t think I’ve ever been shortchanged...
- asdfasgasdgasdg 7y agoI only use market orders. I generally intend to hold a stock for at least a few years when I buy it. What advantage do limit orders offer me?
- FartyMcFarter 7y agoProtection from events like flash crashes.
- ars 7y agoIf you do a limit order that is higher than the current market order, you stand a pretty decent chance of executing at that price rather than at the more beneficial market price. Market order just means sell it at what it's worth right now.
- kgwgk 7y agoI’m sure there may be “failures” sometimes, but shouldn’t in principle the transaction be done at the NBBO?
- ineedasername 7y agoWould you mind explaining the difference between a market order & a limit order?
- patmcc 7y agoA market order is "I want to buy 10 units, no matter what the market price is" and a limit order is "I want to buy 10 units at a price no more than $50" or whatever.
- mlthoughts2018 7y agoFor retail investors in a situation like this, it probably doesn’t matter. You would create a buy limit order at a price somewhere high enough that it’s likely to execute no matter what the price is doing, so the effect is basically the same as a market order. The advice to generally use limit orders is good though. Rarely would a retail investor need a market order.
- dannyw 7y agoAll retail brokerages, and even many professional brokerages send market orders as limit orders anyway. No one wants 100% slippage.
- ineedasername 7y agoLimit orders certainly seem to make a lot more sense, less risk. Is there a use case for market orders that's Superior to limit orders?
- ericabiz 7y agoI set a buy order yesterday through Schwab and got a notification today that it executed at $38.50, which as far as I can tell was the retail opening price. It executed at 12:08 Eastern.
- nodesocket 7y agoNice work. Was it a market order or limit? If limit, what did you set as the limit price? I waiting and eventually executed my order at $40.36.
- ericabiz 7y agoI set a limit $50 because they didn’t announce a price as far as I could tell, and I knew I was going to be working today and couldn’t pay attention. It did cost me some because I could have bought more shares had I set a lower limit, but I am happy the trade executed at a low price.
- myvoiceismypass 7y agoI set a limit order at 11:42 am (robinhood) today for $39.50 and it executed at 12:08 for $38.50