AIM share limit sell order

[Baxter77]

Hi,

I bought a number of shares in an AIM listed company today. Once the order was placed I set a Sell 'Limit-Day Order' (as this was the only order available during trading hours) to sell at a significantly lower value that I bought the shares at to protect myself from any major falls in prices during the day. The lower value I set the order at was never reached but I found that my shares had sold at a higher price than I bought them for during the day. This was annoying as the shares had risen by quite a margin and look as though they will carry on in that direction but I will now have to buy them again at a higher price and spent an extra16 pounds in the transactions. I rang IG who told me this was normal for the AIM companies if a Limit-Day order is set but I didn't understand the reasoning. Why were they sold at a higher price when no order was placed to sell them at that price? Please help so I don't make the same mistake again. Thanks.

 

[CharlotteIG]

13 hours ago, Baxter77 said:

Hi,

I bought a number of shares in an AIM listed company today. Once the order was placed I set a Sell 'Limit-Day Order' (as this was the only order available during trading hours) to sell at a significantly lower value that I bought the shares at to protect myself from any major falls in prices during the day. The lower value I set the order at was never reached but I found that my shares had sold at a higher price than I bought them for during the day. This was annoying as the shares had risen by quite a margin and look as though they will carry on in that direction but I will now have to buy them again at a higher price and spent an extra16 pounds in the transactions. I rang IG who told me this was normal for the AIM companies if a Limit-Day order is set but I didn't understand the reasoning. Why were they sold at a higher price when no order was placed to sell them at that price? Please help so I don't make the same mistake again. Thanks.

 

Hey @Baxter77 - Thanks for your feedback message. 

Out of market hours we will only allow you to place a limit order because putting a stop order on means you may get closed at a much worse price if the market open is very volatile.

By placing a limit order you instructed us to sell at the price you selected or better (when selling a better price is trigger price or higher). When the market opened we would have found someone willing to buy your shares at the price you selected or better. They would have matched on the order book and the trade was executed. 

If you want something to reflect a stop, it has to be a stop order. A limit order reflects a limit you wish to sell you shares at. 

Let me know if you need some more clarification but I hope this helps.