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" limit orders executing nowhere near my limit price" How is that possible/legal?
by hcknwscommenter 7y ago
" limit orders executing nowhere near my limit price"
How is that possible/legal?
- hedora 7y agoMaybe they were stop orders? Stop orders execute a market trade when the price hits a limit. So, there’s a heuristic around when “the market price hits the limit”. If you execute too late, it might not execute at all. Too close to the limit, and it might cross back over. Also, stop orders are usually done to limit losses, so adding delay increases exposure to loss. https://www.diffen.com/difference/Limit_Order_vs_Stop_Order https://www.diffen.com/difference/Limit_Order_vs_Stop_Order Limit orders typically have higher commissions. Maybe stop orders were being confusingly marketed as limit orders?