Limit orders will only execute (fill) if shares are being traded at or better than your limit price.
- Buy orders will execute when the Ask price is at or below your limit price.
- Sell orders will execute when the Bid price is at or above your limit price.
If you see that the market price passed your limit price during the day, but your order didn’t fill, it could be because there are other investors with existing orders to buy or sell the shares at the same price. Limit orders are filled on a first-come, first-served basis, and market orders always get filled first.
Tip: A low trading volume is usually a good indicator that there is a low supply of shares being traded to meet a high demand driven by multiple open orders. It’s also possible that your order will only be partially filled.