When you place a limit order to buy a penny stock?
CJ asked:
and even when the price goes down to your limit yet it doesn’t buy, why is that?
and even when the price goes down to your limit yet it doesn’t buy, why is that?
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don’t waste money on penny stocks – there is lots of manipulation and fraud in those kind of stocks you can lose all your investment very quickly
There may not be a buyer. Penny stocks are frequently illiquid, meaning that very few people buy and sell. In order for your order to be executed, you need to find someone who is willing to sell exactly as many shares as you have at exactly the price you want. The price may go down but that condition may not be met. Make sure your order is for a round lot of 100 shares (i.e., 100, 200, 500, not 37 or 99). Odd lots are harder to sell.
Also note the difference between the bid and the ask. If the bid price falls to your limit price that isn’t going to do anything; all that means is that someone is offering to purchase at your limit price. You need someone who is asking to sell at your limit price. Also, just because have a quote that says that someone paid $5 for it a second ago doesn’t mean that the going price is $5. Demand may have increased in the meantime.
It’s probably the bid-ask spread, which can be significant for penny stocks, percentage wise. The price listed is probably the ask price, not the lower bid price.
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