Someone asks:
I bought AMC stock at $11.00 and sold it at $9.812, so why does Fidelity say I had a Total Price Improvement of $0.03?
Community Answers:
Robert A:
The price improvement on the trade doesn’t have anything to do with your entry and exit points. Fidelity is pointing out that they got you a better execution than your limit order.
When they see an opportunity, they send out an order to buy or sell at a better price. This process happens in real-time and can result in significant savings for Fidelity’s clients.
Mike R:
Because Fidelity isn’t trying to nickel and dime you off order flow, it actually tries to get you the best price on your orders. You placed a limit order at $8.90, basically saying you won’t take less than $8.90 for the stock. Fidelity was able to execute at a higher price, thus price improvement.
Jason B:
The price improvement has nothing to do with the limit price. It has to do with the price when the transaction was placed.
It should have filled at $9.782, but with the $0.03 price improvement, it filled at $9.812.
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