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
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
