A newbie question.

Not sure if this is the best place to ask, but I figure someone here might know:

If I place a buy limit order for say 2000 shares at $1, and it gets partially filled (say 1000 shares) at $1, but following this sale the price goes up so the rest of the order is never filled, what happens? Does the broker just inform you that they weren't able to fill the order? Do you get the partial order?

I guess this will vary with different brokers / what the conditions are you agree too in the fine print somewhere etc., but as a general rule what happens? Just wondering about stuff like brokerage (i.e. do you end up with the same brokerage fee but with half the parcel of shares?).

(Ps. Hi all, first post! Been lurking for a long while so thought I should sign up.)

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Originally Posted by Ketel One

Not sure if this is the best place to ask, but I figure someone here might know:

If I place a buy limit order for say 2000 shares at $1, and it gets partially filled (say 1000 shares) at $1, but following this sale the price goes up so the rest of the order is never filled, what happens? Does the broker just inform you that they weren't able to fill the order? Do you get the partial order?

I guess this will vary with different brokers / what the conditions are you agree too in the fine print somewhere etc., but as a general rule what happens? Just wondering about stuff like brokerage (i.e. do you end up with the same brokerage fee but with half the parcel of shares?).

(Ps. Hi all, first post! Been lurking for a long while so thought I should sign up.)

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Welcome to Sharetrader, & good one for posting :)

Unfilled orders can remain open for up to 20 days with ASB Securities, i assume the main brokers are roughly the same?

You can change the quantity of the unfilled portion or even cancel the rest, as the brokerage will usually come out of the portion that was filled.

You can adjust the price as well as the quantity on the unfilled portion, & potentially buy them cheaper (or more of them!)

You can avoid the part filling of orders by buying "on market", but that has it's pitfalls.

Hope that helps ;)

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Originally Posted by shasta

Welcome to Sharetrader, & good one for posting :)

Unfilled orders can remain open for up to 20 days with ASB Securities, i assume the main brokers are roughly the same?

You can change the quantity of the unfilled portion or even cancel the rest, as the brokerage will usually come out of the portion that was filled.

You can adjust the price as well as the quantity on the unfilled portion, & potentially buy them cheaper (or more of them!)

You can avoid the part filling of orders by buying "on market", but that has it's pitfalls.

Hope that helps ;)

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Thanks shasta, was a great help.

Quote:

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Originally Posted by Ketel One

Not sure if this is the best place to ask, but I figure someone here might know:

If I place a buy limit order for say 2000 shares at $1, and it gets partially filled (say 1000 shares) at $1, but following this sale the price goes up so the rest of the order is never filled, what happens? Does the broker just inform you that they weren't able to fill the order? Do you get the partial order?

I guess this will vary with different brokers / what the conditions are you agree too in the fine print somewhere etc., but as a general rule what happens? Just wondering about stuff like brokerage (i.e. do you end up with the same brokerage fee but with half the parcel of shares?).

(Ps. Hi all, first post! Been lurking for a long while so thought I should sign up.)

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I'm a property investor and know next to nothing about shares. But I dabble a little and use Direct broking and do all transactions online. It's dead easy to change orders or cancel unfilled portion, or increase price etc. Their fees seem to be much better than other brokers, and you don't have to talk to anyone if you can't be bothered. Like me! Mind you I only buy things - I've never tried selling, but it looks easy..

So, as a matter of interest fungus, what companies are you buying shares in? if you don't mind the question?

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Originally Posted by funguspudding

I'm a property investor and know next to nothing about shares. But I dabble a little and use Direct broking and do all transactions online. It's dead easy to change orders or cancel unfilled portion, or increase price etc. Their fees seem to be much better than other brokers, and you don't have to talk to anyone if you can't be bothered. Like me! Mind you I only buy things - I've never tried selling, but it looks easy..

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Thanks, yeah I use direct broking too through the National Bank (as I already had an NB account I could use) and was actually wondering about the how they deal with partially filled orders as I had one buying VPE on friday.

I was curious, as in some ways it seems like it can add to your risk. For example: if i'm buying small parcels then broker fees are a non-insignificant addition to my risk since I have to pay (say) $30 for a buy, but only end up with a very small (say 1/4 the size) parcel relative to the the whole order if the price goes up once that part of the order is filled (meaning the rest of the order will go unfilled if i'm unwilling to pay more).

Pretty specific situation I guess (and only relevent buying < $10k worth for our online brokers as otherwise fees are going to be a %). Also as shasta said, it can always be avoided by buying 'on market' if you don't mind too much about the exact entry price.

I use ASB securities on the US market. costs me approx 50 to 90 us for each transaction. I also have a us online account through a us broker where I can trade in real time. I don't trade in new Zealand. there are more opportunities, I think, in USA

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Originally Posted by outspoken

So, as a matter of interest fungus, what companies are you buying shares in? if you don't mind the question?

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ING property trust. Kermadec and Kiwi Income property.

I hate bidding on very illiquid stocks or options...
If say you only get 5000 units sold at 1cent it makes the brokerage kill any chance of a profit...
To reduce this risk, make sure you buy when the seller is there, and sell when the buyer is there...
:cool:
.^sc