Just need a clarification on pending order. What should be the price it will execute? In my sense it should be the price at the time I have requested not the price value when the execution will be carried out say at the end of day. Need an answer.
The confusion arises as when I see the pending order, it shows the current price not the agreed price.
market orders do not provide an agreed price. they give an estimate for what you could expect the market to fill your order at. no matter how long it has been pending, it will execute at whatever rate the market is at once that pending becomes a processed order not the rate for when you placed the order.
if you want a specific price, use limit orders.
I thought it will execute the rate I ordered. It does not seem right.
That’s what a limit order is for, five the maximum price you’re willing to pay to make sure you don’t pay more than you were asking for. Hit that also risks your order not going through if it doesn’t get filled
think of it this way:
A pending order means an order that has not yet been processed. As it hasn’t been processed, the market doesn’t yet know you want to buy/sell and therefore cannot find you a match. The market can only start finding a match once the order is processed and recorded on the books.
so if you place an order while the market is closed, your order will execute at the next market open, at whatever rate the market is currently at when the market opens.
that is just how the system works. this is in part why there are a good number of people who want access to the pre-market and after-market. the liquidity and prices may be a bit more volatile and erratic compared to during normal market hours, however they open up the possibility for orders to be executed outside of normal market hours. ideally, you would still only use limit orders to protect yourself from large swings that leave you at a loss.
I didn’t request it for ‘pending’. It was a normal buying process. Most of my orders are done instantly. This time it didn’t execute instantly but showing as pending. When I ordered it was p2.30 Probably after half an hour later it executed with the price p2.50. If I knew I wouldn’t have executed the order. It is probably in AIM.
Thanks for the response. I don’t think I have seen this message. We are learning.
