Quick one team. Perhaps I am just not understanding this whole share thing but this morning at pre market I placed an order for a stock. The order executed at 8.01 at a price much higher than the actual stock was/is, how/why does this happen? e.g. the stock has peaked this morning at 1.69 but my order was executed at 1.75… how?
This type of question is easier to answer if you name the stock concerned and explain if you had entered a market or limit order, and at what time.
Richard, fair point. I have 2, one was SIG (SHI), I literally just placed an order this morning and it states in my notifications that i placed at order for p33.64 at 8.11. The share has now appeared in my list at a purchase price of 34.07. It has not reach 34.07 at all today. Why is the value executed higher than the stock has been? I had the same for 3x granite shares rolls royce. It executed at 1.75 but has not hit that value today yet.
The ask is indicative.
If it was a market order it means give me the best ask at the time.
Note the 8:00 and 8:05 timestamps in the shots are correct it’s just how they offset, it’s the same candle.
What I don’t understand is how a trade at 8:11 would be 34.07
Do you have a screenshot of the transaction, if you scroll down on the stock and in history should be at the top.
Says here #18 you got 5,500 @ 33.64
The 34.20 was the result of the auction uncrossing. UT on #1.
Is 34.07 your avg instead as in you’ve previously bought higher?
Edit
I assume you bought 3LRR on open, I’m seeing an ask of 1.75
Richard, on there mine are the number 1 and 18 transaction as you stated above.
According to my history those transactions were executed at a price of 34.20. is that correct?
Apologies, Replied to the wrong person
Phil, on there mine are the number 1 and 18 transaction as you stated above.
According to my history those transactions were executed at a price of 34.20. is that correct?
So number #18 is just yourself buying 5500 @ 33.64
#1 is the result of the opening auction which looks like was just you. 20,000 @ 34.20
((5500 * 33.64) + (20000 * 34.20)) / (5500 + 20000)
= 34.07
So thats what I would expect to show next to Average price:
Better to set a limit price always.
So two market buys, one at auction where you paid 34.20 and another at 8.11 where the indicative ask of 33.64 was hit.
If think you may have been looking at yesterdays closing ask and thinking thats what you would get on open which is never the case.
As @adrazz mentioned a limit buy would have guaranteed the max you paid. Basically it will either execute at that price or better, or not at all.
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Phil, the maths I understand. That’s not the issue. Its the price, why would it be executed at a price it hasn’t reached today? or am I totally miss-understanding? if I look at the graphs today, the highest I have seen it hit is 36.33
If you are looking at line charts they are just an average.
If you use the arrows next to where it says market open or tilt your phone landscape and then swap to candle.
So that was the ASK
If I switch to Tradingview I can see your trade.
Yeah fair enough, I’m on the candle now. Looks like I just got some seriously back luck. it was 34.5 for a micro second and that’s what the order was executed on it seems. I just thought that the way it works when you buy it tries to give you the best price available within a time window. a few seconds later and I would have got it cheaper. I guess that’s not how it works. But I thought that’s what the delay in the execution was. guess not.
Thank you for al your help Phil. This is all new to me (as you can probably guess) and it seems I have absolutely zero lick with the shares game. Its beyond infuriating. Lol.
I think you were looking at yesterday closing ASK which is maybe where you got stuck.
Also each candle on the 1M represents 1 minute of action. The O H L C shows what went on.
Before the market opens you have an auction and a few throughout the day. Thats what I was saying about with the UT on row #1 it means uncrossing and turns out it was an auction of just you.
Pretty cheeky move by the MM as it was around the 33.3x previously.
Unfortunately if you put a market order at open you playing with fire. Its never advisable to buy on open unless you have been following the premarket action. At least with a limit order instead you’ll never pay more than what you intended.
It’s all a learning experience myself included.
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If you always use a limit buy and it misses then there is no loss, keep the limit order and wait for the stock to come back to the price you are comfortable with.
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It’s also worth looking at where the price is in comparison in the long run.
So whilst you paid a bit more than you wanted you should be fine holding to bring the BID above your average.
If you were in it for the swing then end of October was the entry, 24 Nov exit.
Regardless of how long you intend to hold it’s always best waiting to go in or top up until the RSI is over sold (bottom red one below 30)
Best advice which I never listen to myself is don’t go all in heavy, keep a bit of funds back.