Limit price purchase

lspar · #1 (**permalink**) 07-10-08, 10:41 PM

If a "limit purchase" is ordered on line at night, will the purchase be made at the opening price or will it be or the limit price?
Example; stock opens at $9.87 and I have placed a Limit Buy at $10.00. Might I purchase the stock at less than my limit?

HappyT90 · #2 (**permalink**) 07-11-08, 10:37 AM

A limit buy is supposed to purchase the stock at the specified price or better. Therefore, it should purchase the stock at less than the limit.

StockJunkie · #3 (**permalink**) 07-11-08, 12:15 PM

Quote:

A limit buy is supposed to purchase the stock at the specified price or better. Therefore, it should purchase the stock at less than the limit.

Spot on Happy. Blain (stocktrading101) covered the topic as well which may help for clarification,

http://www.stocktradingtogo.com/2007...how-they-work/

To answer the question directly, if the opening price was $9.87 your limit order would get filled at the best ask which would be $9.87 or maybe $9.88 depending.

Fredledingue · #4 (**permalink**) 08-11-08, 05:09 PM

Yes, if you broker is honnest and doesn't charge you more than they should.

I have got often limit buy orders filled a penny or two under the limit price, but rarely more.

What can happen however is that the order is not filled at the open price because the price moved too fast. Orders are queued and it depends where on the queue you are.