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Binance - limit buy at €1.10 was filled at €1.03

  • 22-05-2021 7:54am
    #1
    Registered Users Posts: 63 ✭✭✭ EagerBeaverton


    Had XRP and sold all this week on the China news. Set a limit buy in just in case some news came out that brought things back up as I'm not able to keep an eye everyday.

    I set the limit at €1.10 being pretty confident it wouldn't get that high so the order wouldn't be filled. I did this just in case it was just a temporary drop but was confident it wouldn't reach this figure and it never has since.

    Have been keeping an eye and saw it drop to ~€0.70 again and just logged in to my Binance account and saw that the order had been filled very soon after I set the limit order. It was filled when XRP went to €1.03 even though I set the limit at €1.10.

    Have I completely misunderstood the limit order process and cost myself 30% of the my investment? My understanding was that it wouldn't be filled unless it hit €1.10. When I set the limit order it was at ~€0.88 if memory serves me.


Comments

  • Registered Users Posts: 620 ✭✭✭ Idioteque


    Why would you want to buy a stock at a higher price than needed?

    A limit buy order is to buy a stock at your set price or lower.


  • Registered Users Posts: 545 ✭✭✭ shawki


    What is a Buy Limit Order?
    A buy limit order is an order to purchase an asset at or below a specified price, allowing traders to control how much they pay. By using a limit order to make a purchase, the investor is guaranteed to pay that price or less.


  • Registered Users Posts: 63 ✭✭✭ EagerBeaverton


    Idioteque wrote: »
    Why would you want to buy a stock at a higher price than needed?

    A limit buy order is to buy a stock at your set price or lower.

    Ah, I obviously misunderstood the limit order process. I thought it would buy only when it reached the set price.

    I had sold all of my XRP and was trying to cover a potential rebound in price. I wasn't expecting a rebound and wasn't trying to buy at a higher price, I was trying to just have an order in place in case the price started to rebound and I wasn't able to manually buy in again. I thought that by setting it at €1.10 that the order wouldn't fill until it went up to €1.10.

    In other words:
    > I sold all XRP at about €1.15
    > XRP was at ~€0.88
    > I set the limit thinking that if it went back up to €1.10 that might indicate a rebound so I wanted to get back in if so.
    > I thought that it wouldn't fill until it got back up to €1.10.

    I obviously made a balls of it.

    For future reference so I don't screw myself over again, is there a type of order that is the opposite to a limit order and instead will buy if the stock goes up to or above a certain price? Maybe that's daft.


  • Registered Users Posts: 15,319 ✭✭✭✭ Donald Trump


    Ah, I obviously misunderstood the limit order process. I thought it would buy only when it reached the set price.

    I had sold all of my XRP and was trying to cover a potential rebound in price. I wasn't expecting a rebound and wasn't trying to buy at a higher price, I was trying to just have an order in place in case the price started to rebound and I wasn't able to manually buy in again. I thought that by setting it at €1.10 that the order wouldn't fill until it went up to €1.10.

    In other words:
    > I sold all XRP at about €1.15
    > XRP was at ~€0.88
    > I set the limit thinking that if it went back up to €1.10 that might indicate a rebound so I wanted to get back in if so.
    > I thought that it wouldn't fill until it got back up to €1.10.

    I obviously made a balls of it.

    For future reference so I don't screw myself over again, is there a type of order that is the opposite to a limit order and instead will buy if the stock goes up to or above a certain price? Maybe that's daft.




    You wanted a stop order if that is what you wanted to do. Be sure of what you are doing though


  • Registered Users Posts: 620 ✭✭✭ Idioteque




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  • Registered Users Posts: 63 ✭✭✭ EagerBeaverton


    You wanted a stop order if that is what you wanted to do. Be sure of what you are doing though
    Idioteque wrote: »
    That would be a stop buy order


    Dang, I tried reading about that but couldn't get the rocks in my head to understand how it worked.


  • Registered Users Posts: 620 ✭✭✭ Idioteque


    Just be careful with stop orders as you’re not guaranteed either on buying or selling to be near the price you’ve entered as you’re effectively taking the market price once your stop is triggered.

    In your example above if you were to set your stop buy at €1.10 you may get it at that price but equally you could end up paying €1.50 for example.

    Some of the more experienced traders may be able to suggest how to only trade with a narrow range. I only do basic order types.


  • Registered Users Posts: 15,319 ✭✭✭✭ Donald Trump


    Dang, I tried reading about that but couldn't get the rocks in my head to understand how it worked.




    stop: If it hits that figure, then go out and buy it for whatever it is at the time you can get it (It might have moved on from that point by the time you get a seller)


    limit: buy at this price or below.


    If it was 1.50 now and you set your limit for 1.00 then if it hits 1.00 or below, then you buy. Or you could issue a limit to sell at 2.00 or above. Sell if someone gives you better than 2.00.


    If it was 1.50 now you might want to issue a stop order for 1.00 to sell to cut your losses if it hits that point. Or you might want to set a stop order to buy at 2.00 which is along the lines of what you were trying to do



    If it was 1.50 now you don't issue a limit to say "buy as 2.00 or less" because it is currently less than 2.00. I mean you can, but it would effectively be a market order to buy now at whatever is best.


  • Registered Users Posts: 63 ✭✭✭ EagerBeaverton


    Cheers for the guidance.

    So on the attached image, if XRP was at €0.88 and I wanted to set a figure of €1.10 to buy XRP at to cover a potential price rebound, what figures would I put into Stop and Limit?

    I think I got confused by there being two figures, I thought there would just be either Stop or Limit, not both.


  • Registered Users Posts: 15,539 ✭✭✭✭ fritzelly


    Cheers for the guidance.

    So on the attached image, if XRP was at €0.88 and I wanted to set a figure of €1.10 to buy XRP at to cover a potential price rebound, what figures would I put into Stop and Limit?

    Why would you put an order on to buy when the price is higher than it is now?

    You would want to sell when the price rises to a point you think is the top and buy when the price is the lowest you think it will reach - or in either case a price you are happy to sell or buy at


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  • Registered Users Posts: 63 ✭✭✭ EagerBeaverton


    fritzelly wrote: »
    Why would you put an order on to buy when the price is higher than it is now?

    You would want to sell when the price rises to a point you think is the top and buy when the price is the lowest you think it will reach - or in either case a price you are happy to sell or buy at

    Because I got out when I believed the price would fall and continue to fall but wanted to cover the possibility that some new announcement would send everyone back into a buying frenzy.

    Crypto has been pretty volatile and for a while, multiple times a day, I was checking prices and news around the world that might impact crypto positively or negatively. I got lucky and jumped into doge (yeah a sh1tcoin by a lot of people's views) at €0.04 back when Musk's tweets actually bumped the prices almost immediately but I got fed up with all of that and decided to just learn to set some limits/stops so that I wouldn't been obsessively checking all the time.

    Sorry if I sound grouchy, but as I've said above, I didn't expect it to go to €1.10, it was a figure I was comfortable buying back into XRP again as I had already checked out above that figure. It was just in case, for example, China came out with some other news that positively rattled crytpo and everyone jumped on the bandwagon again while I was asleep.


  • Registered Users Posts: 15,539 ✭✭✭✭ fritzelly


    It's 0.86 now so why not buy now (not advice), why on earth would you want to wait til it hits 1.10

    I'm confused


  • Registered Users Posts: 304 ✭✭ 11521323


    fritzelly wrote: »
    Why would you put an order on to buy when the price is higher than it is now?

    You would want to sell when the price rises to a point you think is the top and buy when the price is the lowest you think it will reach - or in either case a price you are happy to sell or buy at

    I think he knows that. From reading his posts he obviously wants to place the order to buy at a certain price as he feels if it reaches this price, it will continue to rise to an even higher price. The order that he wants to place will buy the asset in the event that he misses the price action and/or forgets to buy it back.


  • Registered Users Posts: 15,539 ✭✭✭✭ fritzelly


    11521323 wrote: »
    I think he knows that. From reading his posts he obviously wants to place the order to buy at a certain price as he feels if it reaches this price, it will continue to rise to an even higher price. The order that he wants to place will buy the asset in the event that he misses the price action and/or forgets to buy it back.

    Weird for a coin that only spiked above 1.20 for a short period


  • Registered Users Posts: 63 ✭✭✭ EagerBeaverton


    fritzelly wrote: »
    It's 0.86 now so why not buy now, why on earth would you want to wait til it hits 1.10

    I'm confused

    Because I believe it won't stay at 0.86 and will actually go lower. I have no grounds for this belief but it's how I'm approaching it.

    Why would I buy at 0.86 when I think it'll go below this? When I set the limit at €1.10, XRP was at 0.88. I didn't want to set the limit at 0.89, 0.90, 0.91, 0.92 etc. because I believed any brief spike up to those values were temporary and overall XRP would continue to fall.

    So I set the figure at €1.10 as a safety net (decided upon in my own head) because I felt temporary spikes wouldn't go that high and only some major news that would lead everyone to jump in again en mass and lead to XRP rising well beyond €1.10 - so I was happy to buy in again at €1.10 because in my belief if it went back to €1.10 then it would continue to go well beyond €1.10.


  • Registered Users Posts: 63 ✭✭✭ EagerBeaverton


    fritzelly wrote: »
    Weird for a coin that only spiked above 1.20 for a short period


    Yeah, I'm not a pro at this, I'm doing my best with the marbles I have.

    What might happen if the SEC drops all charges and / or Coinbase relists XRP? Frankly I don't know what will happen but if that news broke and I had tuned out from things for a while (plenty of others things going on in my life) I'd like to have bought in again at €1.10 as it's a figure I'm comfortable with.

    Maybe I'm thick but it's what I'm happydoing with money I'm comfortable losing if I get it wrong.


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