Originally Posted By: Hokiefyd
Thanks. Sorry for not clarifying: these would be limit orders. I've only ever traded using market orders which execute immediately. The answer, it appears, is that these types of orders would never happen after hours; so what I'm getting from this is in the first example it would sell at $15, and in the second example it would sell at $25.
I'm not sure I follow you. You said
Originally Posted By: Hokiefyd
General question on a specific situation:
Say you own a stock currently valued at $20 and you have a sell order to sell if the stock falls to $18. What happens if the stock closes at $20 yesterday and opens at $15 today? Does it sell at $15 at 9:30am at market open, or would it sell at some point during after hours trading when the stock crossed $18?
1. The only way you'd get a fill the following morning at $15 is if you entered a limit order at $15, and the bid was at $15 at some point that day.
You could also use GTC orders, and stop limit orders. I kept it simple for the example above. If you don't enter a GTC order and you don't get a fill the order dies at the close of the market. If you enter a GTC order the order stays open for 30-90 days depending on your broker, or until it gets filled. It doesn't apply to after hours. In order to buy and sell in after hours you have to specifically trade in after hours.
In this example:
Originally Posted By: Hokiefyd
The same question could apply in reverse. If the stock is valued at $20 and you have a sell order at $22, what happens if the stock opens at $25 the next day? Do your shares get sold at $22 or at $25?
For this example there are two ways you get filled the next day @ $25.
1. The day before you entered a GTC order for a limit of $25, bid hits $25 you get a fill.
2. That morning you enter a limit order for $25, the bid hits $25 you get a fill.
I suggest you do some reading on Limit orders, Stop Limit Orders, [how to set them up], [very helpful], and Good Till Cancel orders GTC.