Novice here:
I had a limit to sell @.30 and when market open it decided to execute @.47.
Isn’t limit order about the desired selling price?
I didn’t want my postion to close at that asking price rather near @.30, in case the market dropped below near that price.
Would this have happened with a Stop Loss too?
Is this normal practice from trades?
This is because Limit Sell order executes at the limit price you gave or better, at the time of execution, of course given there’s liquidity and a better price or at least the limit price is available.
Because your order was entered when the market opened, when your order was sent to the exchange, it was immediately marketable (meaning executable) because the conditions of the order were satisfied, hence it was not necessary to put your order in the book but to rather just execute it at the best current ask.
In case of Stop Loss, the same would happen, if the Stop price is reached, the order becomes a market order and executes at the current best price available.
So it sounds like you actually wanted to place a stop loss set at 0.3 so at that point it would automatically make a market sell on your behalf.
What you did is put in a limit sell saying I want 0.3 or better. So it said right I can do that now the BID is already above 0.3, have 0.4782 sold!
Thanks for the information and time. I understand it better now and will be more aware of this in the future.
This post can be closed now.
