Stock Market Opening Bell Time
Aug/100
Stock Market Opening Bell Time
How can I buy or sell a stock at the opening bell price?
I will often place a day market buy or sell order at night time, for execution the next morning. I was expecting that by doing that I would automatically get the opening bell price. But it turns out that quite often that is not the case – the order gets executed at a minute or two after the opening bell (say at 9:32AM or so), and it seems like usually I end up on the losing end of that price swing, compared to the profit I might have made if the transaction had taken place at the opening price. Any idea how I can actually get these market orders to execute at the opening bell price?
I am using Schwab as my brokerage. In general I am liking them a lot as an online discount brokerage – but does the choice of brokerage make a difference for this issue?
Getting the opening price would be pure luck. There is no way to ensure it. That is because all orders placed overnight go into a queue. There may dozens, or even hundreds, of orders in line ahead of yours. The broker you use doesn’t matter. Schwab is probably as good as most at order execution. Activity is intense in the opening minutes and none of them can put you at the head of the line.
You should always use a limit order when placing orders overnight. Determine the price you want, and let the market come to you. If you are satisfied with the day’s closing price just set your limit at, or a few cents away from the it. Then you will be protected from the big opening swings.
Starting Bell – Market Open 10.17
