Limit orders

[wsha]

HI everyone

Im a first time a caller, Ive been wanting to ask a question about Limit orders.
When a limit order to buy is instructed will it be executed when the market bid price hits that limit order, or is it when the market offer price hits that limit order.


Thanx
Waj

 

[SOCRATES]

When the ask price hits the limit. This is because you buy on the ask and sell on the bid, and not the other way round.

 

[wsha]

When the ask price hits the limit. This is because you buy on the ask and sell on the bid, and not the other way round.

Thanks for the reply