Personal Finance

Need Stock trading advice

  • Last Updated:
  • Aug 2nd, 2009 12:31 am
[OP]
Jr. Member
Jul 10, 2009
179 posts
1 upvote

Need Stock trading advice

when i buy and sell stock, i do it at the market price. I trade with cibc 6.95 a trade. I only trade very liquid us etf,s. I try and buy lower sell higher(usually opposite). My question is this i spoke to a broker who came in the store and he told me that its very risky buying and selling at market price, They could clear it for anything he said. I always seem to get it right at the quote for that second. Can it happen that somebody bids 0.02 and gets a 10.00 dollar equity and i take the loss? can someone who trades weigh in on this.
4 replies
Deal Addict
Jul 28, 2005
3237 posts
25 upvotes
My understanding, and it's not knowledge perfect in this area so someone please correct my if I'm wrong, is that there is no real risk if this is a liquid stock.


When you place a market order and it gets routed to a particular exchange or market maker, you get the best possible price on the books of where ever it was routed.

So if you make a buy market order, it is going to be filled by the lowest sell price that is currently open. And if you make a sell market order, it is going to be filled with the highest open buy price.

So I can't imagine any risks with a liquid stock.
[OP]
Jr. Member
Jul 10, 2009
179 posts
1 upvote
asdfvcx wrote:
Aug 1st, 2009 6:24 pm
My understanding, and it's not knowledge perfect in this area so someone please correct my if I'm wrong, is that there is no real risk if this is a liquid stock.


When you place a market order and it gets routed to a particular exchange or market maker, you get the best possible price on the books of where ever it was routed.

So if you make a buy market order, it is going to be filled by the lowest sell price that is currently open. And if you make a sell market order, it is going to be filled with the highest open buy price.

So I can't imagine any risks with a liquid stock.

thats what i thought, but this client put some fear in me, and i wanted to hear what i think from some other people, your probably right though
hey any daytraders out there
Sr. Member
User avatar
Aug 10, 2005
596 posts
54 upvotes
Unless it's a stock with very low volume, you should expect to buy or sell at roughly the same price as it's currently at. If the stock is fluctuating a lot during that time then, the price at the time the transfer executes, might be 5-10 cents different than it was a second ago when you got the quote.

I think that some brokers don't like these online brokerages because it eliminates the middle man, which is them.
Deal Fanatic
User avatar
Dec 21, 2005
5242 posts
483 upvotes
Markham
Market orders "should" be fast (i know scotia has a money-back guarantee if your TSX marker order doesn't clear within 10 sec)

You just open yourself to extra risk with market orders -- where 100million shares trade each day, 1 or 2 cents here and there adds up pretty quickly
:idea: :) :lol: :razz: :D

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