Limit in, Gaps up, Wiped out?

ledgy · Jul 7, 2011

Say for example:-

Soyabeans currently trading at 1345.75

Limit sell entered at 1350.00

Stop 1374.00

The market gaps open at 1380

Is your sell order triggered and stop taken out in one fell swoop, or your limit order now voided?

Any definitive answers would be appreciated.

Depth Trade · Jul 8, 2011

Your position would have been closed at available market Ask price that had enough volume to close your position.

Any available price above your Stop would be considered 'slippage'

Sang Froid · Jul 8, 2011

Well you learn something new everyday huh.

I was always under the impression that the limit order wouldn't have triggered if it gaps open above. However, if you were to hold an open position and it gaps open above your stop then I believe the technical term is "your ****ed pal".

Anyway, always good to know.

Depth Trade · Jul 8, 2011

Re-reading your post, I believe you would not have had your limit sell ticket executed, because it gapped open above your limit price.

I guess one of the more important variable is the Platform and Broker you are using.
You should probably be asking them.

ledgy · Jul 8, 2011

Thanks guys I will.

Don't want to be caught with my pants down on soyabeans!

new_trader · Jul 8, 2011

ledgy said:
Thanks guys I will.

Don't want to be caught with my pants down on soyabeans!

A quick lesson on soybeans trading.

Limit in, Gaps up, Wiped out?

ledgy

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Depth Trade

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Sang Froid

Well-known member

Depth Trade

Experienced member

ledgy

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new_trader

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