02/22/2021 02:25

$Bitcoin Hey guys. hoping someone could help me out with understavding market and limit buys on here. When I purchaee bitcoin at market price, the purchase goes through but is filled at a higher price than the current price. And so Im instantly in the red. when i place a limit buy at put the limit at the current price or close to it, the order does not get filled when it hits that limit. Still gets filled significantly higher. Does anyone know why this is happening ?
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All Comments(5)

206****13002/22/2021 02:36
There are 3 prices. 1) Bid: this is the highest price someone is willing to buy. 2) Ask: this is lowest someone is willing to sell. 3) Listed average price you're looking at: this is just average of the 2 prices for the chart.

Look at the bar with the 2 prices under the chart. It shows 1) Bid price (in blue) and Ask price (in red) and 2) Amount of shares/coins offered for buy/sell.

When you buy looking at the list price and see you're purchase price is higher its because you bought the ASK price (which is the least someone will sell at.) If you bought more than was available at that price (with market buy), you bought into the next Ask price level, until order is satisfied.

If you Limit buy, it waits until red price meets your limit NOT the list price.

Also, when you sell, you will be selling at the Bid price, which is below lost price. (Be aware of that... if you bought at "10" (list) buy really bought at 12 Ask, and it goes up 1, you will sell at Bid price and lose a bunch of money. You MUST make gains so your buy price is above that blue Bid price if you want to make money.

Hope this helps.

BoyMom120402/22/2021 02:42

Got it! I really appreciate you. This helped me a ton!!!

206****13002/22/2021 02:37

Also, forget what the others say, Webull doesn't charge fees... they make money charging the order fillers for delivering orders.


Jay02/22/2021 02:33
You need to research how the bid/ask mechanic works when purchasing securities and crypto. The market price you see, is the ‘mid-price’ between the bid price and the ask price. If you place a market order, you are agreeing to pay the best available “ask price” for your coins. This ask price is generally several hundred dollars above the market price, hence your immediate negative net profit.

The bid/ask mechanic, to a similar effect, is the reason your limits are not being filled. Since the market price is the mid-price between bid and ask, your limit will not be filled until there is an available ask price at your limit buy price.

BoyMom120402/22/2021 03:44

Thank you. I fully understand how it works on webull now. I appreciate your reply!


Stonkhold Syndrome02/22/2021 02:31
your broker skims off your purchases. set a limit and stick with it and don't FOMO and you'll be fine. it will have to fall below that price before your broker will purchase, so they can skim

BoyMom120402/22/2021 02:34

Understand. Appreciate your reply.


Sensationist02/22/2021 02:28
The price you pay for free trades.

BoyMom120402/22/2021 02:35

Appreciate your reply


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