Can I buy at x and sell at y...

[2infinity33]

Hello, all. New to trading here. I have only messed around with simulators and am.curious about the following scenario:

Let's say xyz stock is currently market priced at 19.50, and I place a limit order asking to buy 1000 shares at 19.48. Can this deal be executed without the market price dropping to 19.48?

And on the other hand, if efg stock is currently priced at 29.50, is it possible for me to place a limit sell at 29.52 and have this executed without the market price changing?

And finally, if the deals in question went through, would you actually pay/receive the stated prices or would the bid/ask spread prevent one from doing so?

Thanks in advance for any information...

 

[Purple Brain]

In your example are you quoting the mid-price or the bid/ask prices?

You buy on the Ask (the higher price) and sell on the Bid (the lower price) – regardless of order type, limit or market.

A buy limit at 19.48 will be executed when the Ask drops to or below 48. Your limit sell will be executed when the Bid rises to 52 or above. You’d obviously use a stop order to enter a sell at a lower than current market price or to enter a buy at higher than current market price.

 

[Hoggums]

Hello, all. New to trading here. I have only messed around with simulators and am.curious about the following scenario:

Let's say xyz stock is currently market priced at 19.50, and I place a limit order asking to buy 1000 shares at 19.48. Can this deal be executed without the market price dropping to 19.48?

And on the other hand, if efg stock is currently priced at 29.50, is it possible for me to place a limit sell at 29.52 and have this executed without the market price changing?

And finally, if the deals in question went through, would you actually pay/receive the stated prices or would the bid/ask spread prevent one from doing so?

Thanks in advance for any information...

In short no. If you trade at 19.48 - then someone must be offering the share at that price to match your order - so therefore the market must be at 19.48 (or lower)

What you are looking for is free money - and that isn't going to happen!

 

[pro_fx]

An order cannot be executed until it reaches the specified limit, if it is ask or buy price.

 

[2infinity33]

The simulator app I'm using on my phone allows me to do so frequently, that's why I was asking.

Is it possible that with a non-volatile, high-volume stock one could potentially perform these executions due to microfluctuations in the bid/ask but the overall general stability of the particular stock?

And why the hell does this simulator app perform the execution if the real market would not!?!?

 

[rsh01]

The simulator app I'm using on my phone allows me to do so frequently, that's why I was asking.

Is it possible that with a non-volatile, high-volume stock one could potentially perform these executions due to microfluctuations in the bid/ask but the overall general stability of the particular stock?

And why the hell does this simulator app perform the execution if the real market would not!?!?

market makers are doing the same thing, as well as capital rich institutions with the bonus of dark pools & HFT algos which front run you....you are gonna have to be pretty quick on the mouse button, assuming you are fitted with the latest fibre optic networking cables & your offices are located next to the exchange.

its called scalping. loads of ppl do it, works in loadsa markets, ranging liquid ones are good for obv reasons. queueing orders used to give prop traders an 'edge' in eurex markets scalping cos it is FIFO but thats kinda dangerous nowadays with the vols, & i believe the algos leave orders in overnight anyway.

i looked at coding a scalping algo on the schatz (2 yr german bond) - it wld bounce around all day long making it great to scalp, but then you need to be able to cut your posn asap cos it cld wipe your losses out in a quick move. it worked great in quiet times - 9 30 to midday ish.

you still needed to read PA imo, you need to spot the levels, trends, & identify the flow from the ticker. it made me go mental cos i was fixated every minute of the day....too much stress. though i have the TA skills, more importantly i dont think i learnt the art of scalping - which is when to know when to switch off & leave the market be...hard to do when your TP is a cpl of ticks per trade, & hard to code into an algo.....but theres guys who do it v well, and gd skills to them.

re getting an edge - we used to queue up oil (brent crude) calendar spreads on the bid & offer on back months - which were v illiquid, & wld often get filled both sides w/o price changing for some free money. that died quite quick in the time i was trading it, volumes & volatility increased so was too risky and difficult to get good queue posn.