If I set up a buy/limit order at 50% of a current stock price will there be any chance it will get sold?

Question

Just wanting to know if anyone would catch this and let it slip by in a big order or even if you could explain how this concept works.

Answer 1

here's how a limit order works.

Let's say you want to buy abc stock. it is now doing $10.00. You place a limit order to buy the stock at $9.0. If the price of the stock goes down to $9, then your order gets filled. You can also place a limit order at $11, and if price touches that level, your order gets filled.

It depends on the instrument you want to trade. Some stocks are so volatile and thinly traded that even if you placed a limit order 50% away, it could get hit. But these seldom happens. http://homeruntrades.blogspot.com

Answer 2

Buy/sell limits is actually setting a target price on which the action will take place. If you set limit at 50% of a current price the chances are quite less that the action would trigger because  it seldom happens that the price have so much volatility in a day.(Limit stays for a day)