Query on market order

#1
Query on Limit order

hi,

am just a budding trader ...have a query

suppose XYZ share yesterday closing price is 100 , n i have paced a limit buy order today morning with a limit price of 110 , trigger price of 105...

what happens to this order

1 ] if market opens with a gap , n that XYZ share price goes to 112 n keeps trading above 112....

2 ] if market opens with a gap , n that XYZ share price goes to 112 n fluctuates between 106 - 112

would be very thankful if anyone shares their experiences in this sort of scenarios....
 
Last edited:
#2
hi,

am just a budding trader ...have a query

suppose XYZ share yesterday closing price is 100 , n i have paced a limit buy order today morning with a limit price of 110 , trigger price of 105...

what happens to this order

1 ] if market opens with a gap , n that XYZ share price goes to 112 n keeps trading above 112....

2 ] if market opens with a gap , n that XYZ share price goes to 112 n fluctuates between 106 - 112

would be very thankful if anyone shares their experiences in this sort of scenarios....
The stop orders are dormant in the system and released as limit order once price equal to or better than the trigger price is hit.....so in the senarios you have asked the following will happen :

1) The moment market opens with a gap and records 112 as a price ( which is higher than your trigger prive of 105 ) the system will send a buy order at 105+5 =110 This order will remain as a pending order when price is trading at 112 and above....

2) When price comes down to 110,your pending order will be executed at 110 ... and will result into a buy trade at 110.

Best Wishes,

Smart_trade
 

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