I AM INTERESTED IN PURCHASING A STOCK ON THE HONG KONGEXCHANGE. I CONTACTED MY BROKER AND HE INFORMED METHAT HE COULD PUT IN A LIMIT ORDER AND SEE IF ANYONE WANTS TO SELL IT AT THAT PRICE. IF WE DID A MARKET ORDER, WE DON'T KNOW WHAT PRICE IT WOULD COME BACK AT.WHY CAN'T WE JUST PURCHASE THE STOCK AT THE PRESENT PRICE???/ I AM CONFUSED AND DO NOT UNDERSTAND WHY IT HAS TO BE DONE THIS WAY. IS THERE ANY OTHER WAYTO GET A FIRM PRICE AND BE ABLE TO PURCHASE THE STOCK?
I cannot help but I'm struggling with the same issue. I'm interested in the solution...if you find one. Good luck. :)
The market is like an ongoing auction. The 'price' is what the last buyer and seller agreed upon. When you send a broker into the market to buy for you, he has to join the auction and hope that someone is willing to sell at your buying price. If you put in a 'limit order', you set a price at which you're willing to buy. If no one will sell at that price, the broker comes home empty-handed. When you put in a market order, you're taking a chance on price, but you're sure to get your shares.
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