Author Topic: Sell limit order price?  (Read 338 times)

thedigitalone

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Sell limit order price?
« on: August 06, 2020, 09:32:31 PM »
Question on a limit order, we are selling off a number of RSU's in a stock that has jumped after hours after the earnings report today.

We've placed a limit order of say $100.00 on a large number of shares that is about 10% above the close today.  When the market opens in the morning what happens if it opens at $110, does the order execute at $100 and someone gets a deal or does it sell at $110 and we receive the higher price?

Thanks,
TDO

MustacheAndaHalf

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Re: Sell limit order price?
« Reply #1 on: August 07, 2020, 10:57:51 AM »
The market doesn't actually "jump", but rather very, very quickly buys up all the orders between $100/share and $109/share.  So if you replayed it in very slow motion, you'd see limit orders at $100/share get bought up before limit orders at $101/share, and so on.  So your limit order would likely execute for $100/share very soon after the stock market opens on Monday.

In your situation, I'd look at the website where you issued the sell order, and try to cancel it.  You might find it under "orders" or "open orders".  If you're able to cancel it, that lets you start over on Monday when it's at a higher price.

thedigitalone

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Re: Sell limit order price?
« Reply #2 on: August 07, 2020, 11:57:56 AM »
Thanks for the insight, that's good to know going forward.

We wound up placing the sell order for a few dollars higher than the after-market transactions as a hedge, figured if it opened up that high we'd be happy with the extra $ but didn't really expect it to.

It opened $2 under our limit so it didn't execute, we canceled and placed a new one in the range that it was currently trading in and it went through.

-TDO

Rob_bob

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Re: Sell limit order price?
« Reply #3 on: August 07, 2020, 06:54:42 PM »
I don't know about order flows at market open and the like, I do know that it is your brokers job to get you the best price possible.

I never use a market order, only limit orders and I'm not trying to nickle and dime the price so If I'm buying I place an order a little higher than the current ask price and almost always get the order filled at a lower price than I bid, or a higher price when selling.

markbike528CBX

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Re: Sell limit order price?
« Reply #4 on: August 07, 2020, 07:05:32 PM »
I'd suggest  that you sell a call at your "limit order" price.   If you sell a call at the price of the limit order and get assigned, then you've sold it for what you wanted to get, plus the option premium.  If it  does not met the strike price, you get the premium and another chance to sell later, either limit order or call strike price.