If the closing price of the stock ABC is 100$ and I place a buy limit order at 105$ because of good news, what happens if the market opens at 107$, will the orders between last closing and new opening will be filled or just those above the new opening?
In: Economics
Not accounting for after hours. In a liquid market (ie sufficient buy and sell orders at all prices), your order will not be filled. If it opens at $107 then it signals (in a perfect market) that, at market open, there are no sellers willing to sell below that price and no buyers willing to pay above that price.
EDIT:
In a more real market, $107 is the “last order filled” price. The actual buy-sell spread might be different from that. For example if there was really really good news from ABC overnight, then the lowest priced open sell order could be at $122 and the highest priced open buy order at $118 at market open. If that situation persists, then it is likely that the next order filled would be closer to $120.
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