Stock Question: If you place a limit order example $10 & the price drops to $9-before --->read on?

Question

completeing your order will the broker/ (we use Etrade )
take your your order at 10.00 because the broker knows you are willing to pay it and he will make higher commission out of it? Or will you get the better price of 9.00 even though your limit order was set to no more than $10.00 ?

Answer 1

Your broker makes the same commission regardless of the transaction price. So he has no incentive to manipulate the price you get. In fact he is obligated to get you the best price he can. But since you are one of thousands or millions, other obligations prevent him from considering only your trade.

What actually happens is that your bid will go into a queue. It will then be matched with the next available bid in the ask queue that matches your offer. Prices often fluctuate widely and those swings aren't easily seen by the low volume trader. Since you have indicated a willingness to pay up to $10.00 your bid could easily be matched against a $10.00 ask. Or even a market order. Remember that the other side of the trade has a broker who is also trying to get the best price for his client.

Answer 2

Your broker will only place the order. It will be filled by what it is currently trading at on the exchanges below or at your $10 limit. If you believe you were due a better fill you can request a time and sales read out from your broker. This will show at what price and time your order was filled along with others. It is not uncommon that people are due a better fill than what they got and brokers will correct. Also, you may want to verify what exchange Etrade fills their orders on. Sometimes you'll see a better price on the Pacific exchange, but ETrade may only go by the NY.

Answer 3

If you are going long (expect to make a profit when the price goes up) -
You place a limit order @ $10 -
When the ticker price hits $10, your order is activated and remains on your broker's books until it is filled, or cancelled by you.
If he ticker price is moving up so fast, it blows past your limit price without being filled, it will remain on the books until it comes back down to $10 or better.
Or better means, it could be moving so fast it falls below $10 before it gets filled.
You might get lucky and get filled @ $9.50 while the stock is still in an uptrend.
The scenario you're describing is illegal.
Your broker can lose his license if that's the way he practiced business.
Some brokers can be faster than others at filling orders.
Interactive Brokers is very fast.

Answer 4

Whether you get your stock at $9 depends on how many people are waiting to sell their stock at $9. For example, if you want to buy 100 shares at $10, and somebody is willing to sell 100 shares at $9, then you'll get your shares for $9 regardless...

Your broker is making money, because you pay a commission fee each time you trade. For example, if you buy 100 shares of XYZ stock at $9, then you pay $900 + COMMISSION FEE. The commission fee at Scottrade is $7. Some banks charge $15 and $20 commissions. And I have heard about $100 commission fees too. It's not uncommon. The commission fee is what your broker gets. He will get that money regardless of what price you pay for the stock.

Since your broker makes money each time you buy or sell a stock, your broker wants you to trade as often as possible. This is how he makes a living. You need to be aware of this.

Answer 5

If you put in a limit order for 10.00 it will trigger your buy order for the stock at that price,
also was it a day order a day order is only good for that day or GTC good till cancel goes in every day till filed.

Answer 6

check this link its good


http://buyingandsellingshares.blogspot.com/

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