So I'm trading through IB, saw that GEVO was trying to break HOD. I wanted to set a Limit When Touched order for if it would break past the HOD.
I did that when the price was at 0.64. HOD was 0.655, so I entered a Limit When Touched order with the limit price at 0.6750 and the touch price at 0.6700.
IB IMMEDIATELY executed my order after I entered it, which is NOT what I wanted it to do. I bought at 0.64 before the breakout happened. I cut losses immediately, cause I only wanted to go long if the HOD break happened.
So I'm quite irritated at the moment. Why did IB execute my order immediately? It did not touch my 'touch' price... Can anyone explain to me what has happened?
Posted Jun 16, 16 10:13 AMbyDoncematic
Categories
Trading Mistakes
@RyanAnthony Seems you're right about that. A stop limit buy order would seem to do exactly what I wanted to do yesterday. I will try that one from now on.
@Legendario That's why I though a Limit When Touched would do the job for me. In my thinking, this limit order would only be executed once the price of the stock touched the HOD again.
@petwyt1218 I understand, but I still think that's what the 'When Touched' clause should have prevented in my order. In my thinking, this order should not have been executed because the stock price did not touch the HOD yet... Can you tell me how a 'When Touched' clause works in an order like this?
@RyanAnthony I think what I should have done is to enter a Stop Limit buy order, with the stop price at the HOD (same as my initial 'when touched' price of 0.67) and the limit price at 0.675. Am I correct? And could you promise me that this will work next time? ;)
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