stock investing question

[brotherhef]

I am new to stock investing. Anybody know the answer to this.

If I am going to do a limit buy order.

And say The current price is $40/share. If I entered a limit buy order at a crazy number...like $95/share (when market only went to $41/share). would it

a) put my order through at $95/share or
B) put my order through at current market price as long as it is lower than $95/ share

 

[Scott Hearn]

It's your 2nd option. I think...Usually a limit buy order is in reverse of your example.

For instance: Stock is currently at $100 per share. You enter a limit buy order at $90. The order processes when the price drops down to $90 triggering your order. If it doesn't drop that far the order never processes.

 

[LuckyDucky]

When you set a buy limit above the market price, your order will be treated as a market order.

Set buy limits below market price, sell limits above

Set buy stops above market price, sell stops below.

Use trailing stops/limits if the broker you are using will allow you to do so cheaply.

 

[jtischauser]

Buy ammo instead it's a sure thing only goes up in price.

 

[sefentress]

Monte carlo or adjustable? : :sarcastichand: :sarcastichand: