BUY STOPs do not guarantee that your order will be filled.
Know how your platform or broker executes them:
Make sure that you understand the rules.
Know how your platform or broker executes them:
Make sure that you understand the rules.
My broker sends the orders as a limit order once any trade is executed at the stipulated price.
Your broker may do buy stops differently...
Your broker may do buy stops differently...
Often price will jump past your level without yours getting a fill
but the order will be placed and remain open until you cancel it or it gets a fill
- or -
but the order will be placed and remain open until you cancel it or it gets a fill
- or -
there may be multiple trades at your level but your order is too far back
in the order book and doesn't get a fill before price goes in the direction you expected.
Also be aware that some platforms will allow limit orders to be placed above the current Bid/Ask.
These orders may be executed at current market, no matter how far above the bid/ask you placed them.
This can be problematic if you also have very tight bracket stop loss orders associated with them.
Also be aware that some platforms will allow limit orders to be placed above the current Bid/Ask.
These orders may be executed at current market, no matter how far above the bid/ask you placed them.
This can be problematic if you also have very tight bracket stop loss orders associated with them.
