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?
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.
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.
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.