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Trades always execute at exactly the market price. A limit order says that if the market price reaches your limit price, execute the trade. At that moment, your
by pocksuppet 7mo ago
Trades always execute at exactly the market price. A limit order says that if the market price reaches your limit price, execute the trade. At that moment, your limit price will equal the market price.
- klodolph 7mo agoThat is technically correct but uninformative. If there’s a point you’re making, I can’t figure it out. You earlier said that there’s no point in bidding anything but “current market price”, and that’s what I was responding to. Limit orders can execute at current market price but they can also execute at some future market price. It’s ok to place limit orders, they just have different risks from market orders.