Order Type Query

S

ScoobyStoo

Hi All,

Please forgive me for asking a dumb question, but I'm fairly new to this game.

What type of order should I use if I want to enter a trade immediately but limit the max/min price that the order can be executed at?

Just as a very basic example, an instrument's spread is 100 - 101 and I want to enter long. However, the price is moving like a rocket and the spread is changing enormously. I have done my calculations and, taking into account my stop price, I have worked out that I can stay within my risk management tolerances as long as I get a fill at less than or equal to 104.

Up until now I have been using market orders but sometimes I have been getting fills at prices which mean I have busted my risk tolerances.

Gut instinct tells me I should be using some sort of a limit order with the limit price above the currently trading price.

What strategy should I use to get into the market immediately but limit the max/min price at which I can get filled?

Thanks in advance
 
buy order up to 104.....you should get best price fill if the offer is at under 104 when it is executed. depends on what exchange but that's what i do
 
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