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Price Action on Market Open


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Hi.

Just thought I would try this again as I haven't had a response on a previous post. Similar posters have asked the question but not really answered. 

Scenario: Price at pre-market is gapping up with price at £10 just before pre-market closes.  Buy order placed at Market price, to execute on market open. Buy order gets filled on market open for £10.01. Price gaps up immediately as it does when bullish (to say £15) providing a profit on sale. This is from the IG paper trading account. I understand the different types of orders etc, but it is just to confirm that the only reason this order is filled is because it is paper trading, as surely it would not get filled if the market price rises immediately on market open.

Many thanks, any response would be appreciated.

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2 hours ago, kiwilifer said:

Hi.

Just thought I would try this again as I haven't had a response on a previous post. Similar posters have asked the question but not really answered. 

Scenario: Price at pre-market is gapping up with price at £10 just before pre-market closes.  Buy order placed at Market price, to execute on market open. Buy order gets filled on market open for £10.01. Price gaps up immediately as it does when bullish (to say £15) providing a profit on sale. This is from the IG paper trading account. I understand the different types of orders etc, but it is just to confirm that the only reason this order is filled is because it is paper trading, as surely it would not get filled if the market price rises immediately on market open.

Many thanks, any response would be appreciated.

Hi, yes the demo will not show slippage on orders but will just fill automatically, of  course if there is not gap up then the live would be the same as the demo. Gaps is cause by the opening auction which processes pending orders before live trading starts.

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