All orders are “limit orders" where you specify a “limit price” at and quantity for which you are willing to transact. Limit orders depend on whether you are buying or selling:
Buy orders: - the “limit price” entered is the highest price at which you are willing to pay.
Sell orders: - the “limit price” entered is the lowest price at which you are willing to sell.
This structure is in place so a buy order will only match at the limit price or lower and a sell order will only match at the limit price or higher.
Please be advised that orders will match on a first-come-first-served basis.
Example:
- Buy Order 1: buy order for 10 shares, at a limit price of $10 entered at 3:00 PM
- Buy Order 2: buy order for 10 shares, at a limit price of $10 at 3:05 PM
- Sell Order 1: sell order for 10 shares, at a limit price of $10 at 3:10 PM
A trade would match and execute between Buy Order 1 and Sell Order 1.
Buy Order 2 would still be open.
Why was my order only partially filled?
When is the trading market open?