Question about limit orders

Buy high sell low

It has surpassed the price now, I just didn't expect that to happen, because I never used limit orders before. Thanks rocket

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which my brokerage account does not accept market orders for.

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That’s a new one on me. I’ve never seen that before.

But why would one set a limit order ABOVE the market price?

You should have the option to purchase at market price.

What broker did you use? What is the ticker symbol of the ETF? What was your limit price?

You shouldn't use market orders. I've seen people get hosed on pricing when using market orders.

Seems like a violation of Reg BI, but you’d have to do some research on that to verify

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It has surpassed the price now, I just didn't expect that to happen, because I never used limit orders before.

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FWIW, doubtful this had anything to do with your limit order per se. Essentially you placed a market order.

As you probably know, market transactions are a bid-ask basis. Bids fall below current stock price. Asks are above. In volatile markets or instances of lower trade activity, bid-ask spreads can be considerable.

The risk of market orders is your order getting matched with higher than market asks. That's likely what happened here, and though it may not have been as obvious, you've gotten tagged with similar costs in other of your market order transactions.

That's fine if your goal is solely to commit to a position. But to avoid over market price risk, place purchase limits at the current price or lower. e.g., I can't recall the last time I placed a market order, if ever. Occasionally though, as you alluded, you'll get stuck with a partial position.