Why can't you trade in real time?

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syngameon
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Why can't you trade in real time?

Post by syngameon »

Every time I do a trade on Fidelity, I get a message: "The trade will be executed at the next available price". Essentially what that means is that the trade happens sometime after the market closes.

Why this restriction? I can understand limiting trading too many times during a day, but why can't we trade in real time?
Longdog
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Re: Why can't you trade in real time?

Post by Longdog »

What security are you attempting to trade?
Steve
Geologist
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Re: Why can't you trade in real time?

Post by Geologist »

What are you trading?

If it is a mutual fund, there is no "real time" price. The price (or net asset value) is only determined after the market close each day.

If it is something else, I'm not sure what you mean by "the next available price..is that the trade happens after the market closes."
Topic Author
syngameon
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Re: Why can't you trade in real time?

Post by syngameon »

Mutual funds (FZROX is one example) but also AAPL. I get the same message with both.
Geologist
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Re: Why can't you trade in real time?

Post by Geologist »

Here is a key sentence from the prospectus of a Vanguard mutual fund (and I'm sure basically the same information is in the prospectus for Fidelity mutual funds such as FZROX):

"Share price, also known as net asset value (NAV), is calculated as of the close of regular trading on the New York Stock Exchange (NYSE), generally 4 p.m., Eastern time, on each day that the NYSE is open for business (a business day)."

Therefore, as I wrote earlier, there is no share price during the day so no "real time" trading for mutual funds.

I don't have any information about why you get messages like this for Apple.
Underscore
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Re: Why can't you trade in real time?

Post by Underscore »

Are you executing market-priced trades on Fidelity?

For AAPL you certainly should be able to execute a Limit order, which lets you specify a maximum purchase price or minimum sell price as the limit.

The default in their interface is Market. If you want to set a price, you need to change Market to Limit in their trade order form.
Topic Author
syngameon
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Re: Why can't you trade in real time?

Post by syngameon »

Underscore wrote: Sun Feb 11, 2024 9:44 pm Are you executing market-priced trades on Fidelity?

For AAPL you certainly should be able to execute a Limit order, which lets you specify a maximum purchase price or minimum sell price as the limit.

The default in their interface is Market. If you want to set a price, you need to change Market to Limit in their trade order form.
Yes, I am able to set the max price for individual stocks. I was confused mainly about the real time trade. It seems there is an explanation for that.
Doctor Rhythm
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Re: Why can't you trade in real time?

Post by Doctor Rhythm »

syngameon wrote: Sun Feb 11, 2024 9:39 pm Mutual funds (FZROX is one example) but also AAPL. I get the same message with both.
Mutual funds are priced once per day, at the end of the trading day.

I don’t trade stocks, but what kind of order are you placing for AAPL? Also, are you certain that you’re only getting the 4 PM price? “Next available price” doesn’t necessarily mean end of day price.
Hyperchicken
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Re: Why can't you trade in real time?

Post by Hyperchicken »

syngameon wrote: Sun Feb 11, 2024 9:53 pm Yes, I am able to set the max price for individual stocks. I was confused mainly about the real time trade. It seems there is an explanation for that.
It sounds like you are placing out-of-the-money limit order, and it is not getting triggered. Market order would execute instantly on high volume stocks. Same for in-the-money limit order.
yolointopants
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Re: Why can't you trade in real time?

Post by yolointopants »

syngameon wrote: Sun Feb 11, 2024 9:30 pm Every time I do a trade on Fidelity, I get a message: "The trade will be executed at the next available price". Essentially what that means is that the trade happens sometime after the market closes.

Why this restriction? I can understand limiting trading too many times during a day, but why can't we trade in real time?
You can and will trade at the current price, but the price you are quoted is an old price (seconds / minutes old but still). If you do market orders, it can vary quickly. It's the price you could receive, but not assured to, with market orders. I've noticed that warning too.
toddthebod
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Re: Why can't you trade in real time?

Post by toddthebod »

syngameon wrote: Sun Feb 11, 2024 9:30 pm Every time I do a trade on Fidelity, I get a message: "The trade will be executed at the next available price". Essentially what that means is that the trade happens sometime after the market closes.

Why this restriction? I can understand limiting trading too many times during a day, but why can't we trade in real time?
By default Fidelity is showing you delayed quotes (like 15 minutes ago), so when you place a market order, they want to make it clear that you are not getting the price they quoted. Try signing up for real-time quotes and see if you still get that message.
https://www.fidelity.com/customer-servi ... ime-quotes
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muffins14
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Re: Why can't you trade in real time?

Post by muffins14 »

Perhaps it is just semantics.

Time only goes forward, so when you click “buy”, you have to see what is still available for sale. Your order then gets filled at whatever is the next price that has a seller for the thing you want to buy. Nothing can actually happen at the same instant.
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toddthebod
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Re: Why can't you trade in real time?

Post by toddthebod »

muffins14 wrote: Sun Feb 11, 2024 10:43 pm Perhaps it is just semantics.

Time only goes forward, so when you click “buy”, you have to see what is still available for sale. Your order then gets filled at whatever is the next price that has a seller for the thing you want to buy. Nothing can actually happen at the same instant.
That's a good point. No matter what quote you see when you place your order, by the time you are done typing in the number of shares and clicking submit, that quote is out of date.
Backtests without cash flows are meaningless. Returns without dividends are lies.
SwiftKey
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Re: Why can't you trade in real time?

Post by SwiftKey »

muffins14 wrote: Sun Feb 11, 2024 10:43 pm Perhaps it is just semantics.

Time only goes forward, so when you click “buy”, you have to see what is still available for sale. Your order then gets filled at whatever is the next price that has a seller for the thing you want to buy. Nothing can actually happen at the same instant.
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the_wiki
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Re: Why can't you trade in real time?

Post by the_wiki »

syngameon wrote: Sun Feb 11, 2024 9:39 pm Mutual funds (FZROX is one example) but also AAPL. I get the same message with both.
A regular market order for Apple will trade in under a second.

Mutual funds all trade once per day in the evening.
jebmke
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Re: Why can't you trade in real time?

Post by jebmke »

muffins14 wrote: Sun Feb 11, 2024 10:43 pm Perhaps it is just semantics.

Time only goes forward, so when you click “buy”, you have to see what is still available for sale. Your order then gets filled at whatever is the next price that has a seller for the thing you want to buy. Nothing can actually happen at the same instant.
So the little dog with the way back machine lied?
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Johm221122
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Re: Why can't you trade in real time?

Post by Johm221122 »

I get that message when I buy ETFs on fidelity and in less than 5 seconds get a order confirmation by text
When you buy an individual stock is this what happens to you?
livesoft
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Re: Why can't you trade in real time?

Post by livesoft »

First thing as I type this is that US stock markets are not open yet. So no regular hours trading is happening right now. One can still submit orders, but they will not be addressed until the stock market opens.
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