Why can’t I set a limit order AT the spot price?
I can only set a limit order to sell if the spot price rises first. And visa versa to buy
Why can’t I set a limit order AT the spot price?
I can only set a limit order to sell if the spot price rises first. And visa versa to buy
Limit and stop order are the the choice when usin [B]pending order[/B].
[U]Just set like this condition:[/U]
limit order ----------------> below current price -------- above current price --------- [I]reversal [/I]
stop order ---------------> above current price -------- below current price --------- [I]continuous[/I]
we can learn further more bout this order on school of pipsology
Hope it will help u out
A limit is an “at or better” order, meaning you will get a fill at your limit price or a better price (higher if a sell limit, lower if a buy limit). If you put one in at the current spot price it would be executed immediately.
Why would you want to put in a limit (or a stop) at the current spot price anyway?
For example if the market is closed and I expect the price to drop when it opens. If I place a limit order above the spot price then if the price plummets then the LO won’t be triggered
Your example sounds like you are looking for a break to the downside when the market opens. You could use a stop order instead of a limit order.
Buy stops and sell limits go above current price.
Sell stops and buy limits go below current price.
If you think the market is going to run lower when it opens (as opposed to simply gapping lower), then you can put in a standing market order. It will get filled when trading starts.