Hello! I'm fairly new to this and have a basic question: If I place a limitorder to buy a specific share for $10, will $10 then be exactly what I pay assuming it goes through? Or could I end up getting it for a lower price and the entered price therefore could buy seen as a max-price? And on the opposite, if I place a limitorder to sell for $10 will I always get exactly $10 or could I get more if someone is willing to buy for higher? I understand that it can't be the latter case for both sell and buy. If it's the former case for both, and one sells for 10 and therefore get 10 and one buys for 15 and therefore pay 15, where does the remaining 5 go? Thanks in advance!
The short answer is yes to both scenarios. It does not happen very often but could. If a stock is at 11 and you put a limit order for 10 and the stock jumps down suddenly to 9 you would get it at nine. The reverse could happen on a sell order. But like I said, this is not very likely to happen on stocks with normal liquidity.
Jerry is right. The only time that you usually get a better price than your limit order is if it gaps up/down before the open for eexample.
