Basic question about limit orders

[alichambers]

Hello,

I have a question about fulfillment of limit orders. Sorry if it is a bit basic!

Assume the price on the GBP:USD is now 1.9840. I am using EFX Group.

I place a limit order to buy when the price reaches 1.9850.

I have found that when the market price = 1.9850, the quoted prices are:

BID:
1.9849

ASK:
1.9851

So will my limit order be fulfilled at market (1.9850) or the ask price when the market price is 1.9850, which = 1.9851?

Thanks,
Alex

[TheOne]

I was wondering the same thing. Meant to ask but was too lazy.

[TheOne]

Somebody Anybody.

[TheRumpledOne]

Do you meant a BUY STOP LIMIT or LIMIT?

If you enter a limit order to buy at 1.9850, you will be filled at 1.9850 or LESS not more!!

When you use limit orders you NEVER get filled at a worse price.

[TheOne]

TRO what I am trying to understand is the value that you are filled affected by the spread. Using the previous example.
If you enter a limit order to buy at 1.9850 and the spread is say two (2) pips will this be filled when the spread price touches that value. That is at 1.9848 or 1.9852 for buy or sell. So if the spread moves to five (5) pips will you now be filled three pips early. I hope this makes sense.

[TheRumpledOne]

If the bid is 1.9849 and the ask is 1.9851 AND you enter a buy limit at 1.9850. guess what...

Eitther your order gets filled at 1.9850 or your order is now the best bid at 1.9850.

[alichambers]

Understood and thanks! It was a buy stop order.

AC

[TheOne]

I think I got it thanks. Well almost.