What would have happened if this were a real trade?

danielson

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Hey everyone.

I'm just getting started in trading and so currently practise using a demo account with IG. On Monday I was scanning through stock twits pre-market looking for stocks to trade and discovered that Pfizer had announced they were to buy Anacor pharmaceuticals for $5.2 billion, increasing the share price to $98 or so from the previous days close of around $63. The Anacor price on stock twits had already risen to the 90's pre-market, but when i opened up IG it was still at the closing price of the previous day. I couldn't buy any shares there and then as it hadn't opened yet but i placed an order to open my trade at one point above current price of roughly $63. Ive attached the order below. When the market opened at 09:30 ET the share price rocketed to $93 or so and i closed the deal 'making' over £10k (my position was £3 per point.)

I understand there are lots of differences between paper trading and live, and i'm aware of issues with orders potentially not being filled (I imagine when demand is high like in a situation like this, perhaps?) and slippage. So I was wondering if anyone could shed some light on what would likely happen in this scenario if i were trading for real? Would my order be filled? Partially? Would slippage cause much of a difference in sale price? Would I be likely to be able to sell my shares? Would I have been able to buy the shares at that low price after the buyout announcement had been made?

I know there are lots of variables and so a definitive answer is unlikely, but any insight as to what might possibly have happened from anyone with any experience would be greatly appreciated. It can't be that straight forward, i'm convinced :eek:
 

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