I’m getting very confused with limit orders. It might be related to it being a low-volume stock, but even then there’s something else not right, as my buy order is being ignored when buy orders from other people at a lower price are being fulfilled.
After having been burned by placing a regular buy on TM17 (all the recent trades were around £7.30), mine happily went through at £7.50, I decided to test out limit orders.
I placed a limit order for £7.30 and that completed immediately. I was quite pleased.
As the price had dropped to £7.24, I placed another limit order for £7.22 and went to lunch. Came back to find that there had been 4 trades lower than my buy price (all for £7.20 or lower). As the price was now below £7.20, I deleted my limit order and placed a new one at £7.20 which completed immediately. Even though, I’d just had an active one for a higher price moments before.
I’ve had another limit order for 2 shares at £7.12 placed for about an hour now. There have been multiple trades since then at £7.10, including one for exactly 2 shares (which occurred some time after I placed my limit order), followed by some bigger orders 5 minutes later, also for £7.10.
So, my questions are:
- Why wouldn’t my limit buys succeed when I’m offering more than someone else for the same quantity?
- Why if I cancel my limit buy and create a new one at a lower price, will the buy complete even though the original one didn’t?
BTW, I’m using the history on Google Finance to see prices & volumes of trades.