about limit buy
am new to stock investing. Anybody know the answer to this.
If I am going to do a limit buy order.
And say The current price is $40/share. If I entered a limit buy order at a crazy number...like $95/share. would it
a) put my order through at $95/share even if it only when to $41/share or
b) put my order through at current market price as long as it is lower than $95/ share
Yes, if you put a limit order in above the current price, it will attempt to fill at the best offer. So if you but a buy in at $95 and the stock was at $40, you would get filled at $40.
Your (B) response is how to look at it.
You usually put a limit buy at a lower than current price. So if current price is $40, but you want to pay maximum of $35 for that share, then you put limit buy for $35. So if the stock falls down to $35, your order gets filled.