What is Average Fill Price?
At HowDoITradeStocks.com we use a Buy Stop Order to purchase stocks/ETFs.
A STOP Order is an order to buy that is entered at a price above the current price of the stock. It is triggered when the market price touches or goes through the stop price we have set. e.g. If the stock is at $45, we may set our stop order (Buy price) to $45.50. So we will get our order filled at around $45.50.
When we say “at around”, it means it may not get filled at exactly $45.50 because as soon as the price of the stock reaches the Stop order price (Buy price) it immediately turns into a market order and therefore gets filled at the best price available at the time. So we may enter the trade +/- at few cents either side of the $45.50.
Therefore, Average Fill Price is the average price each stock was actually purchased for.