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TOPIC: Trade above the ask

Trade above the ask 6 years 6 months ago #1

  • rysky007
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- When trying to get into
a fast moving stock, set your
buy limit order anywere
from 2 to 6 points higher
then the current ask price
to ensure that you get filled
even if the stock runs up
past you.

Ex:
If the current ask is
.0037, placing your order
at .004 or even .0045 would
help get you filled if the stock moves up while you are waiting in line to get filled.

Why this works?
Limit orders are designed
to fill you at the best price available up to your limit price. So even if you place your order at .004 and the best price available is .0037, it will fill you at .0037 or .0038 or .0039 but never above the limit price you set.
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