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I just joined this service and was on my broker account exploring how to buy a stock.
The one I was looking at closed at 150$ ish. When I entered to purchase one share the price it said I was going to pay was 167$ plus broker fees. Why did the system automatically price it at 17$ more than the market close price?
This is so confusing. :/
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What stock was it? When did you put the order in? Were the markets open when you placed the order? I ask because you mentioned the stock closing at $150. After hours trading can yield some high bid/ask spreads and unpredictable stock price movements.

If the markets were in fact closed then I definitely would not recommend putting in a market order for anything, and instead wait for when markets open the next day. If you did want to put an order in when markets were closed for some reason, you should use a limit order. Do you know about the difference between market and limit orders?

What broker do you use? What are the commissions charged for a stock transaction?

What service did you join?

I realize I asked more questions than I answered but you didn't provide quite enough information to narrow down the problem.


Mike
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Did you make a market order?

You can lock in a price by entering a limit order. If you place your order between the bid and ask prices, it will usually fill quickly at the price you specify. If you chose a price outside the bid/ask range, it may take a while to fill or may not fill and have to cancel.

Limit orders keep you in charge of the share price. Market orders are usually fine when the stock is actively traded and the bid/ask range is small. But there are times when a limit order is useful.
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I'm going to guess the stock is Facebook, which reported fourth quarter earnings after the markets closed. Facebook closed at $150.42 but then went up to $167.74 in after hours trading after the great report.

If this is the case then yeah, I'd make sure to always use limit orders so you know for sure what price you'll be paying. For highly liquid stocks, large cap stocks like Facebook you can usually get away with market orders when the market is open, but you just happened to put in a market order for a stock that had just reported really good earnings right after the market closed.


Mike
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