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Interesting question I think..
The other trading platform I use offers sell limit orders, sell stop orders, buy stop orders and buy limit orders..
We all (should) know that a buy limit order is placed below the market while a buy stop order is place above the market.
I have noticed before, and wondered about, FXCM on this matter.. FXCM just takes a sell order or a buy order. I have always assumed this is because if you put in a buy order below the market then it is a buy limit and if you put in a buy order that is above the market it is treated as a buy stop. This made sense..
On Friday I put in, what was at the time, a buy limit order on EURJPY, as the buy order was placed below the market. To be more specific the order was 105.93.
As I often do (lol) I forgot to cancel that order until after the close on Friday..
Today EURJPY gapped lower on the open.. Below, in fact, my 105.93 "buy limit" order.
Well hell.. now I have my answer but I'll continue this strictly for educational purposes..
Before today's open, after I saw my order still sitting there, I was wondering will FXCM still treat my order as a buy limit and fill me at 105.93 or "better" or will they automatically convert my buy limit order to a buy stop order?
I didn't see how they could ethically change a buy limit to a buy stop without authorization to do so so I figured I should get filled at the lower price.
Anyway how do you tell what the open was? 105.40 maybe it looks like?
At any rate, once the market opened I was filled at 105.507 at 5 minutes after the (official?) open. So my order did apparently remain a buy limit..
And that's what I wanted to know so now, if you didn't know before you should know now too ;)
Greg
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