I trade alot premarket and there really is no set market as everything is limit orders and you put your own prices in..Went to short a stock the other day and got filled before 9.30...Bought to cover 2 minutes later for a nice profit...Got called about half hour later and was told trade was busted..Not only that, but I now owned the stock which was never my intention...Stock kept going down so not only did I not make money, I lost alot...Anything to do or anyone know any firm that would cancel my buy or put it in their error acoount to protect their customers? Any ideas?
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Any recourse on Busted Trades?
- Thread starter Shorttrader88
- Start date
Quote from Shorttrader88:
I trade alot premarket and there really is no set market as everything is limit orders and you put your own prices in..Went to short a stock the other day and got filled before 9.30...Bought to cover 2 minutes later for a nice profit...Got called about half hour later and was told trade was busted..Not only that, but I now owned the stock which was never my intention...Stock kept going down so not only did I not make money, I lost alot...Anything to do or anyone know any firm that would cancel my buy or put it in their error acoount to protect their customers? Any ideas?
no, you are stuck with whatever the exchanges decide. did it deserve to be busted?
Didnt think so...If everything is a limit order, you are making your own market and if I have the best offer and someone wants it, they can buy it at my price...I am sure they wouldnt have complained if the stock opened higher... Premarket, the spreads are usually big and to fill a limit order, you have to put it in at that price or higher..Why do I get stuck when I I made a good faith trade. How do you know when to close a position if it might be busted?
it does not matter what you think. every exchange has rules they go by such as anything 3% away from the market can be busted. you need to know these rules and if you get a gift you have to hold it until you are sure they will not bust.
Quote from Shorttrader88:
Didnt think so...If everything is a limit order, you are making your own market and if I have the best offer and someone wants it, they can buy it at my price...I am sure they wouldnt have complained if the stock opened higher... Premarket, the spreads are usually big and to fill a limit order, you have to put it in at that price or higher..Why do I get stuck when I I made a good faith trade. How do you know when to close a position if it might be busted?
Who decides the market premarket? Since its not very liquid, you make your own market with limit orders..The best bid and ask should be the market...Stocks move all over the place premarket...should be caveat emptor..Dont punish someone who makes a profitable trade, if someone doesnt like their trade or makes a mistake, dont punish the other person
if you got out of the trade right away, you may try to call the broker to try to make a deal. If you are a decent customer, with a decent history, sometimes they will throw you a bone to keep your business. just be a nice guy and talk to them...being an ass about it rarely work i find (i have only delt with institutions on this..not retail).
but more than likely you are stuck with the exchanges decision.
but more than likely you are stuck with the exchanges decision.
Quote from Shorttrader88:
Who decides the market premarket? Since its not very liquid, you make your own market with limit orders..The best bid and ask should be the market...Stocks move all over the place premarket...should be caveat emptor..Dont punish someone who makes a profitable trade, if someone doesnt like their trade or makes a mistake, dont punish the other person
that is not how it works. if you were on the other side of this trade would you have requested a bust?
Quote from Shorttrader88:
Who decides the market premarket? Since its not very liquid, you make your own market with limit orders..The best bid and ask should be the market...Stocks move all over the place premarket...should be caveat emptor..Dont punish someone who makes a profitable trade, if someone doesnt like their trade or makes a mistake, dont punish the other person
i believe there are povisions for "fat finger" mistakes and the like. dont know the exact rules. If you bust it right away, and dont have a history of busting all of your bad trades...you can get away with it.
Have been a customer for 2 years..trade everyday...Wont do a thing..Gets me leary about closing out a profitable position and I like to make quick profit and not hang around..