If I buy shares while market is closed, what will happen?
Is it going to execute the moment it opens back up with the current price on display?
E: GILD is displayed as $76 now but $86 if I look at its premarket price. What will my order execute for
Depends on the type of order. If you set a limit buy order for $10 and market opens at $15, nothing will happen.
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Ah okay, so it jumps straight away to whatever it is premarket. I was hoping to catch some buffering time while it’s jumping up between the two prices
Premarket can jump up and down. So you don’t know where it will open exactly. Some shares have typical behavior, for example they always drop after opening. Most of the time I don’t trade the first 30 mins after the bell, because price will jump a lot. After 30 mins the trend for the day is set most of the time. In case you want to buy cheap and price goes down, then just be patience and wait for it to dip.
In this case I know the price is going up, so it’s less about speculation and more about whether I can quickly buy as it updates (goes from displayed $76 to premarket current $86)
Just to add in, Trading212 are great for getting you the best price.
Say you want to sell a stock with a limit set to sell at £10.
If the trading opens at £12, Trading212 will try to get you the best price … ie £12.
Which is nice.
They have saved me cash on buying and selling before just because of pre-market run-ups.
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Thank you for the extra info! I only just saw your reply