I have a question and am not sure I’ve managed to find an answer which explains it to me elsewhere so thought I’d ask.
Scenario: it’s the weekend and the market is closed. I would like to buy let’s say a stock of ABC but it could also just as easily be a currency. The bid/ask price is showing as 100.00/100.00 as it’s out of hours.
What price do I enter on the buy order to go long? Is it 100.00? is it a random number such as 100.10 on the basis that the spread will be somewhere like 99.90/100.10 when the market opens?
And what happens if I do enter 100.10 but for some reason the price jumps from it’s previous close of 100.00 straight through to something like 102.00 when it opens? Does that mean I’ve missed out on the trade? I think this is called gapping but beyond that I don’t know much else.
Sorry but just can’t seem to find the answers to these anywhere.
Thanks for all your help.