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Author: Tredos1 One star, 50 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 35400  
Subject: Re: Trading rules Date: 12/12/2007 10:03 AM
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I had the same thing explained to me as well. The limit order is just a note to the broker telling them to place a market order once the target price has been reached. The target price is only reached once there is a trade that meets the limit criterion. So it's entirely possible to have something trade over your limit as the first trade that would trigger your order. Working with limit and stop orders when there is very little liquidity can result in curious results. You could get an execution price a fair amount off from your entered price.

tredos
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