Aftermarket trading disaster?

C

cubical

I use lightspeed for trading, I am just starting out. I was looking at a stock I traded earlier in
the day, at the time there were only 2 limit orders on
LVL II. One was about 10x more than the closing price
and the other was at .01. My question is what if I
accidently hit buy or sell(market of course). I would
be in debt instantly, many times more than my current
balance. Does lightspeed have something to prevent
this from happening? I tried getting some YHOO right
after that, but it said markets were closed, this was
at 5:55 (I thought after-market was open till 630?).
Maybe this was the reason there were only 2 "funny"
bids for the stock I was looking at. Its just a scary
thought that something like that could happen. I would
be ruined. Is this possible, has it happened before to anyone? Thanks guys!
 
I found on the platform something that says "If the price is too deep" then Warn is checked, and the increment is 1.00. What does this mean? I am guessing it means if the price you are about to buy is more than $1 from the previous sell/buy, it will stop and ask if you are sure, but I am not sure.
 
LMAO - I never thought of that - but - I would guess that if you "made the mistake", you would be screwed for sure.

The thing to do, is enter a limit order one penny above the low bid and one penny below the high ask- if someone else screws up, you'll win lol
 
Quote from cubical:

I use lightspeed for trading, I am just starting out. I was looking at a stock I traded earlier in
the day, at the time there were only 2 limit orders on
LVL II. One was about 10x more than the closing price
and the other was at .01. My question is what if I
accidently hit buy or sell(market of course). I would
be in debt instantly, many times more than my current
balance. Does lightspeed have something to prevent
this from happening? I tried getting some YHOO right
after that, but it said markets were closed, this was
at 5:55 (I thought after-market was open till 630?).
Maybe this was the reason there were only 2 "funny"
bids for the stock I was looking at. Its just a scary
thought that something like that could happen. I would
be ruined. Is this possible, has it happened before to anyone? Thanks guys!
More...

you can file trade bust report, and the trade will be revoked.
 
Trade bust report? Really? Never heard of that. Well that will help me rest a little better knowing i didn't almost screw myself, lol. If you can file trade bust reports, why do people put orders in like that if someone can just reverse the trade? Or are those even real prices? Thanks
 
Quote from cubical:

Trade bust report? Really? Never heard of that. Well that will help me rest a little better knowing i didn't almost screw myself, lol. If you can file trade bust reports, why do people put orders in like that if someone can just reverse the trade? Or are those even real prices? Thanks
More...

Those quotes are not actually in there for 'bona fide' trading they are 'default' quotes. You'll notice after hrs when a symbol is not being traded that quotes will default out to extremes.
 
They are real prices all right.

It happened to me during market hours back in 2000/2001 some time - I wasn't aware my order hit.

A few weeks prior, I had set a limit buy GTC order, only 100 shares on a low volume stock a few bucks under ticker - can't remember which stock, but it hit and my broker called me to let me know about an hour after the trade.

At that time, I was asked to render the trade null - it was my choice. Don't know if it still works that way - IB was very young back then.

Being the nice guy I am, I took pity on the guy that made an obvious mistake - hoping the favor would be returned some day - still waiting on that lol.
 
Quote from AutoMate:

Those quotes are not actually in there for 'bona fide' trading they are 'default' quotes. You'll notice after hrs when a symbol is not being traded that quotes will default out to extremes.
More...

Ah, I see. Well can people trade them? It is possible to show your sell price at 200 and actually defer to sell at something like $30.
 
Quote from NoProblem:

They are real prices all right.

It happened to me during market hours back in 2000/2001 some time - I wasn't aware my order hit.

A few weeks prior, I had set a limit buy GTC order, only 100 shares on a low volume stock a few bucks under ticker - can't remember which stock, but it hit and my broker called me to let me know about an hour after the trade.

At that time, I was asked to render the trade null - it was my choice. Don't know if it still works that way - IB was very young back then.

Being the nice guy I am, I took pity on the guy that made an obvious mistake - hoping the favor would be returned some day - still waiting on that lol.
More...

Well the price I was seeing was not a few $ over closing price, it was over $200. buying 100 shares at $200 more than I should would, well, lets just say I would get a margin call, lol.
 
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