Ask, Last, Bid Parameters In Order Types (Market, Limit, Stop)

[tech/a]

I will give you an answer but I doubt any answer s going to be satisfactory for you.

(1) I personally dont use depth so I look at the price on the chart initially.
Even when using 1 minute charts. If something is moving fast and you want to get on
Buy a market.
If you are in line for he open or close auction an you want to be filled at open or close then nominate your limit price far enough away from the likely close out and you'll be filled.
if you want to get out at a price then place a stop limit order.

I'll jump to 3
If you place a stop order and there is no ask or bid at the price nominated
OR
There is not enough stock available at the price you nominate then you may be partially filled or not filled at all.

I'm not really sure what question 2 is it seems to morph into 1
Which price ---- personally I don't think it matters.
If you really wan it buy at market ---- else----- set a stop or limit order.

It's not that hard!

 

[monkey0]

tech/a I appreciate your reply but what are you talking about? My four (4) questions were completely different.. You were speaking about theory i think but in 1. 2. and 4. i was only asking at what price to LOOK at. In 3. I guess I was understandable enough.. explained many times.

 

[tech/a]

tech/a I appreciate your reply but what are you talking about? My four (4) questions were completely different.. You were speaking about theory i think but in 1. 2. and 4. i was only asking at what price to LOOK at. In 3. I guess I was understandable enough.. explained many times.

Well there you go.
At least I got one thing right.

Sorry I cannot be of help.
Enjoy your journey.

 

[monkey0]

Well there you go.
At least I got one thing right.

Sorry I cannot be of help.
Enjoy your journey.

I am asking most basic questions that could ever be asked. How is possible that someone with 13938 posts on stocks trading forum cannot answer them?

 

[Porper]

I am asking most basic questions that could ever be asked. How is possible that someone with 13938 posts on stocks trading forum cannot answer them?

You are not really lending yourself to people helping you with your attitude.

 

[tech/a]

I am asking most basic questions that could ever be asked. How is possible that someone with 13938 posts on stocks trading forum cannot answer them?

Just dumb I guess.
I have absolutely no idea what the answer is.
In fact I have absolutely no idea what the questions are!

You'd have to ask yourself how basic your questions are with the response you have had so far here and to your service providers.
Perhaps you just have a unique way of asking questions.
Your obviously an intelligent Monkey and even YOU cant find the answers to your Most basic of questions

Nor does anyone else here by the look of it.
Perhaps another forum would be more appropriate for you.
Have a great Xmas.

Perhaps trading isn't for you?

 

[kid hustlr]

LOL this thread is absurd.

In regards to (3) it is not technically first next.

If you set a buy stop at xyz and someone lifts that price in its entirety YOU WILL PAY THE NEXT PRICE ABOVE. You will NEVER get a fill below you buy stop order. It's either at that price or a price above it. This is what slippage is.

Truth be told I don't even know what you are asking and guys a lot smarter than me can't seem to help you so not sure why I'm trying. As far as what price to 'look at' I have no idea what you mean.

The chart reflects last price traded

 

[kid hustlr]

Further, with querie 3, and I think Tech/TH someone will be able to answer this one.

Tech, say as an example the FTSE. its currently: 6483.5/6484

If I have a buy stop @ 6485, it is possible that the inside market can move to say 6486.5/6487 WITHOUT the market trading.

In that case, my understanding is your buy stop will be triggered once the first trade is made above 6485, so in this example if someone buys 6487 our buy stop then gets triggered and we buy that price to.

I'm not 100% sure on this however.

 

[monkey0]

Don't know how is possible everyone can get assist in other topics but only me not. Rude or better said weird, don't know what I have done wrong.

"kid hustlr" In 1 2 4 I am only asking at what should I look at (4 possibilities named several times). In 3 im only asking what happens when defined price reaches current price near y axis. This was (is) all I wanted to know but noone wants to answer.

For 1 2 4 answers the following photo might be useful:

http://www.quotetracker.com/images/qtpics/tradingdemo2.gif

Even the jumping price (also known as Price Near Y Axis and also known as Current price on market) is shown here (20.57). In all three questions (1 2 4) i was only asking which price (the one near y axis, last, bid, ask) is important for stop order, which for market order, which for limit order. Same price is for both buying/selling case but I should look at different one (4 possible prices!) - depends on order type. So what do I spent (buying) or earn (selling) in stop order - which price? what in market, what in limit? thats all.

in 3. question i was just saying what exactly happens (stop order only) when defined price reaches Price Near Y Axis (=current price on market). What is sold (what i earn) or what is bought (what i spent).

 

[Trembling Hand]

What broker are you using?

And stop using "jumping price" that is something you have made up. If you want help from a community you should have the respect to at least learn the correct terms other wise no one will be able to understand you.

 

[tech/a]

Further, with querie 3, and I think Tech/TH someone will be able to answer this one.

Tech, say as an example the FTSE. its currently: 6483.5/6484

If I have a buy stop @ 6485, it is possible that the inside market can move to say 6486.5/6487 WITHOUT the market trading.

In that case, my understanding is your buy stop will be triggered once the first trade is made above 6485, so in this example if someone buys 6487 our buy stop then gets triggered and we buy that price to.

I'm not 100% sure on this however.

Yeh its happened to me.
Infact its happened twice on trailing stop fills and cost me.
Fortunately not on any trades I've left open and gone to bed!
Stop limit the go! (Note to self)

 

[Caveroute]

Don't know how is possible everyone can get assist in other topics but only me not. Rude or better said weird, don't know what I have done wrong.

"kid hustlr" In 1 2 4 I am only asking at what should I look at (4 possibilities named several times). In 3 im only asking what happens when defined price reaches current price near y axis. This was (is) all I wanted to know but noone wants to answer.

For 1 2 4 answers the following photo might be useful:

http://www.quotetracker.com/images/qtpics/tradingdemo2.gif

Even the jumping price (also known as Price Near Y Axis and also known as Current price on market) is shown here (20.57). In all three questions (1 2 4) i was only asking which price (the one near y axis, last, bid, ask) is important for stop order, which for market order, which for limit order. Same price is for both buying/selling case but I should look at different one (4 possible prices!) - depends on order type. So what do I spent (buying) or earn (selling) in stop order - which price? what in market, what in limit? thats all.

in 3. question i was just saying what exactly happens (stop order only) when defined price reaches Price Near Y Axis (=current price on market). What is sold (what i earn) or what is bought (what i spent).

I've asked once before on a different thread .. "what lives in Norway and has a name that begins will T" ?

Why can't anybody answer my question ... god dammit ... it's simple enough ......

 

[Caveroute]

Yeh its happened to me.
Infact its happened twice on trailing stop fills and cost me.
Fortunately not on any trades I've left open and gone to bed!
Stop limit the go! (Note to self)

But not on trailing stops, right, otherwise you could kiss your account good bye.

 

[monkey0]

What broker are you using?

None, im just starting out with learning. Don't want to play lottery and test the luck to profit/lose money. I only start once I can rely on my knowledge I have the ''right'' to expect profit. PLUS you might have overlooked the following - first sentence in first post:

My question is related to any trading platform and any country's stock market.

All questions are very general and I believe the same regardless of platform or country where company is located.

Still waiting for this...

 

[ngombi]

OK, so are are completely new to the market.
You imply that your query is the simplest of questions. They are badly worded questions with the terminology you have used.

Assuming that they really are "the simplest of questions" (they should not really require explanation) I will provide a simple answer.

If you want to buy and are willing to pay the Ask price:- Use a market order.
If you want to sell and are willing to receive the Bid price:- Use a market order.
There is no need for you to specify a price using an at market order.

You should get filled at those prices unless the market is moving very quickly in which case you could get filled at a higher or lower price.
BUT note that the parcel size you require comes into play in comparison to what is on offer or wanted at certain prices to complete your order; in which case your order could again be completed at a higher or lower price.

For a Limit or Stop order; be it buying or selling; the Last, Ask or Bid are irrelevant because you decide and specify the price that you wish to trade at.

 

[burglar]

... For a Limit or Stop order; be it buying or selling; the Last, Ask or Bid are irrelevant because you decide and specify the price that you wish to trade at.

Hi ngombi,
Welcome to ASF.

A very succinct reply, I look forward to your future posts!

 

[skc]

Don't know how is possible everyone can get assist in other topics but only me not. Rude or better said weird, don't know what I have done wrong.

Your questions are very poorly worded, I've read them several times and coudn't make any sense of them. I think quite a few people are willing to help here but you might as well have posted the questions in Portugese.

in 3. question i was just saying what exactly happens (stop order only) when defined price reaches Price Near Y Axis (=current price on market). What is sold (what i earn) or what is bought (what i spent).

For example, no one has ever used the term "earn" and "spent" as trading terminologies. "Price Near Y Axis" or "Jumping Price" also simply make no sense to every trader on this forum.

What you call "Jumping price" is simply a number on a chart. Depending on the charting package used, you can choose for yourself to show on a chart the ASK, the BID, the mid point, or the last traded price. But what is showed on the chart is completely irrelavent to where your price will be filled.

http://www.quotetracker.com/images/q...adingdemo2.gif
Even the jumping price (also known as Price Near Y Axis and also known as Current price on market) is shown here (20.57). In all three questions (1 2 4) i was only asking which price (the one near y axis, last, bid, ask) is important for stop order, which for market order, which for limit order. Same price is for both buying/selling case but I should look at different one (4 possible prices!) - depends on order type. So what do I spent (buying) or earn (selling) in stop order - which price? what in market, what in limit? thats all.

In the image you have attached...

- If you buy at market, you will buy at $20.58.
- If you sell at market, you will sell at $20.57.

- If you buy at limit price (say you specify to be $20.57), your buy order will join the market depth at $20.57 behind the current volume of 224 shares. You won't have a fill until all 224 shares in front of you have been traded or deleted, and someone moves down and sells into your price.
- If you sell at limit price (say you specify to be $20.58), your sell order will join the market depth queue at $20.58 behind the current volume of 815 shares. You won't have a fill until all 815 shares in front of you have been traded or deleted, and someone steps up and buys into your price.

- If you buy at stop price (say you specify to be $20.58), your order will not appear in the market depth. It will be held and monitored by your broker. If someone else trades at $20.58, your stop is triggered and a buy order (at market or at limit, depending on the broker) will be sent. If there are any remaining asks at $20.58 you will be buying at that price, but if there are no more asks at $20.58, you may end up buying at a higher price.

- If you sell at stop price (say you specify to be $20.58), your stop order will be triggered straight away (as the last price was $20.57 which is less than your stop price) and a sell order (at market or at limit, depending on the broker) will be sent. You will sell into the current bids at $20.57 and trade at that price.

All of the above assumes that the bids and asks remain as they are and that your volume doesn't exceed the current available bid and ask volumes.

Hope this helps. If you have further questions it would be helpful to use the right terminology so people can better understand you. Good luck.

 

[monkey0]

ngombi: appreciated your reply, specially last paragraph. Thank you.

skc: For purpose of learning only (not trading with ''real'' money) I am using demos on platforms: Interactive Brokers, eSignal, Speedtrader. Unless I find some better analyzing/trading platform, I will most likely use Speedtrader because Interactive Brokers isn't realtime but with 1 delay. I want to be realtime so to the same microsecond as prices are really varying. For me the term ''better'' (have to explain it since for someone might be this term different than for anyone else) actually means platform with higher amount of features. Anyway, the reason for saying this is that I didn't notice anywhere ''stop market'' or stop limit'' type of orders. Per my understanding on the start of stocks trading ''career'' there are only and exactly the following three types of orders with exact quoted names and Nothing else:

"Market" Order Type
"Limit" Order Type
"Stop" Order Type

For me types/terms "Stop Market" and "Stop Limit" don't exist (yet). NOT because I wouldn't want to learn this but because I haven't heard this on either of resources I am learning from so I am going to have big problems understanding what you meant with:

(at market or at limit, depending on the broker)

Here:

If someone else trades at $20.58

With term ''trades'' you were referring to both/either selling and/or buying case BUT only if this person (''someone else'') trades at STOP order. Only this one. Market and/or limit don't count here. Correct (*****)? So according to what you said and what I quoted then my Stop order for buying case will be executed/triggered already if only ONE person, whoever, does explained trade. Is this correct what you meant with term ''someone else trades''?

If there are any remaining asks at $20.58 you will be buying at that price

I might be going into too small details but buying/asks in what time interval? As long as order is still active and/or NOT cancelled by me. Is this correct?

if there are no more asks at $20.58, you may end up buying at a higher price

So if not even one person buys at $20.58 - this is what you were probably referring with ''no more asks''.
However, as far as I understood and what ngombi said, since its Stop order, I define the price for which i want to buy or sell but now you are saying ''end up buying at a higher price.'' This isn't what ngombi said - this isn't anymore my defined price unless you SKC meant that I define ''higher price'' once again. Did you mean this? Do I define that higher price if not even one person (after my order is added/verified but NOT executed) buys at this exact price? If I remember correctly, when I was checking this on IB demo, I didn't get any requirement to add another price for Stop (buying) order in such case. As ''requirement'' is meant I would at least expect (any platform) window that automatically pops up where I am notified that noone bought for this exact price and therefore I need to enter new price (does that new price MUST be higher? or can be equal previous one once again? or can be lower?). I highly doubt platform (once again, any platform, so asking/saying generally) would ''force'' me to buy at some random price if I don't agree with it. Once again, in this paragraph I am only referring to:

- who is considered as ''no more asks''? Is one person only enough?
- whatever exactly happens if noone buys at $20.58: i don't think first next price that probably comes in next few microseconds would force me to buy (automatically).

Therefore if at least one person trades (buys/stop order Only - see ''*****'' symbol above - just wanted to be understandable) at this price, my order will be executed IMMEDIATELY (or at later time? or when broker reacts? probably immediately) when this happens.

If you sell at stop price (say you specify to be $20.58), your stop order will be triggered straight away (as the last price was $20.57 which is less than your stop price) and a sell order (at market or at limit, depending on the broker) will be sent. You will sell into the current bids at $20.57 and trade at that price.

So here Last price is important. Ngombi said its not (neither ask,bid) but he was probably referring to the fact according to which price type do I sell/buy.
What if the price of type Last was equal to my defined one?
What if above?

I thought I will be having problems understanding in selling case of Stop this:

(at market or at limit, depending on the broker)

as I have problems understanding in buying case of Stop (see reason above - same quotation) but you are basically saying I always sell at price shown by price type Last. This is understandable yes but different comparing to Ngombi's words. So all information/question still needed for selling case of Stop order is what if price was equal? and what if price was higher? you only said for lower case.

 

[tech/a]

OMG

Let me guess
You had " problems "
During your schooling.

You dismantle the car
Before purchasing it.

Your on your 4 TH wife.

You've not grasped chess.

You google google.

 

[Trembling Hand]

You google google.

LOL, doesn't that break the interweb?

as I have problems understanding in buying case of Stop (see reason above - same quotation) but you are basically saying I always sell at price shown by price type Last. This is understandable yes but different comparing to Ngombi's words. So all information/question still needed for selling case of Stop order is what if price was equal? and what if price was higher? you only said for lower case.

Monkey0 I will save you from crashing the internet and causing a black hole to appear at the centre of the earth in which we all get sucked into by offering a 30 min phone call to help clear all this up.

I think that will be the quickest way to answer your questions rather than 1000s of words back and forth. If you think that would be helpful I can private messaged you my number?