I would like to understand that i had placed an overnight order to sell a script for the next day at Rs.380 when closing price was 360.The next day it opened way above my order rate of 380 and made a low of Rs.400 in first 15 min Still my order got executed at Rs400 ie low of the day.How is that possible? Should it not have been order pending since the rate never went to 380.
Is it because i had placed a limit orderand not Sl order…If i have placed an SL order then it would have been pending?
I would like to understand this- If current price is 360 and i place a limit order to sell at 380 and the stock gaps up from 360 like in above example straight to 400(and never goes lower) does the limit order get converted to market order or it remains pending at 380?
A limit order will only execute at the price you have specified or a better price. As you have placed a sell limit order, this will execute at the price specified 360 or higher. So if the market gaps up to 400, your order will execute at that price. You can learn more on how limit order works here:
Ok, is there a way to place an sell order where by it gets executed exactly only at that rate and not higher i.e in above example 380 was limit order but because of gap up scenario even though i got a higher rate the stock went even higher but if it was left pending at 380 i could have cancelled it and and sold it later at my choosing.
for that then u can place limit order
Yes that’s exactly what i did (Limit order).Still the price executed at a higher price which is what i do not want i want exactly the price i have selected.