I put in a small limit buy order (around $100) over the weekend for a small-cap equity trading with low volume. Somehow it got filled almost 6% below my price during pre-market. Cool, right? But why?
The transaction price was also well below the previous trading day's close (around 10% below) and today's open (around 8.5% below).
I figured that someone with a bigger order wanted to sell during pre-market and there was very thin liquidity. I suppose they saw that given the market depth, they'd need to sell at this lower price in order to get their order fully filled.
Is my understanding of what happened correct? I'd like to gain a better understanding of order routing and execution. I'm also curious how common it is for this type of thing to happen.