Hi my name is kevin new to trading ...i placed a market order yesterday to buy some shares at 266p that was the life quote given but the transaction was processed as 288p ...is that normal ? I was pretty shock as I am at lost at the moment... what is the point to get a life quote if they will charge me what ever they pleased. ...
It depends on the price action after you submitted the order, the type of order you submitted, and also the bid/ask spread at the time the order was processed.
The ask price is the price you pay to buy the shares. If you come to sell them at some stage you will be offered the bid price: this will be lower than the ask at that time and the difference is the spread, which is profit for the broker. If the spread was widened by the broker, perhaps because of some news expected or just released, or just the closing/opening time market volatility, the bid and ask prices will change.
If your order was a stop order, the broker will execute it when their ask price reaches the level you specified.
If you specify a buy order and price jumps (gaps) 22p higher, then the broker would be unable to process your order between 266 and 288, as there was never a quoted price in that range. so they would execute it at the first available price at 266 or above (which obviously in this case means at 288).
The ask price is the price you pay to buy the shares. If you come to sell them at some stage you will be offered the bid price: this will be lower than the ask at that time and the difference is the spread, which is profit for the broker. If the spread was widened by the broker, perhaps because of some news expected or just released, or just the closing/opening time market volatility, the bid and ask prices will change.
If your order was a stop order, the broker will execute it when their ask price reaches the level you specified.
If you specify a buy order and price jumps (gaps) 22p higher, then the broker would be unable to process your order between 266 and 288, as there was never a quoted price in that range. so they would execute it at the first available price at 266 or above (which obviously in this case means at 288).
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