Reply to 2 questions.....The exchange busts it and I have no say.......I have made mistakes before , like hitting short button instead of buy to cover...My mistake and I take responsibility for it..Dont make me lose money for someone elses mistake..What if I wasnt around 30 minutes after covering short..If I went out for the day and owned a stock I never wanted to own and it went down 5 points, is that fair?
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Any recourse on Busted Trades?
- Thread starter Shorttrader88
- Start date
i am curious how big a trade it was and with what instument. normally only big players do things like this. the most common bust goes something like this (in debt markets at least):
1. big orderflow comes in and there is a lots of noise on the trading floor.
2. trader gets a customer order over the squawk.
3. tader announces order to "pecker" or the guy in the middle of the pit entering orders (for slower moving markets, the trader also pecks)
4. trader confirms order to customer
5. customer calls trader a dumbass for selling instead of buying.
6. Trader corrects trade, and get on the horn to bust the trade.
7. The other side lets them off the hook becuse they are old buddies...or tells him to go stuff it.
wait a minute.....did you tell the broker you didnt want to bust the trade? if the broker accepted the bust and stuck you holding the bag...you SHOULD be able to tell the broker that you dont want to bust. If they call you 1/2 hour later....doesnt sound like they gave you the chance. maybe the istitutional markets are different becuase everyone knows each other...for the most part.
hmmmm. maybe i am wrong on this or dont understand how retail works...but sounds a bit fishy.
1. big orderflow comes in and there is a lots of noise on the trading floor.
2. trader gets a customer order over the squawk.
3. tader announces order to "pecker" or the guy in the middle of the pit entering orders (for slower moving markets, the trader also pecks)
4. trader confirms order to customer
5. customer calls trader a dumbass for selling instead of buying.
6. Trader corrects trade, and get on the horn to bust the trade.
7. The other side lets them off the hook becuse they are old buddies...or tells him to go stuff it.
wait a minute.....did you tell the broker you didnt want to bust the trade? if the broker accepted the bust and stuck you holding the bag...you SHOULD be able to tell the broker that you dont want to bust. If they call you 1/2 hour later....doesnt sound like they gave you the chance. maybe the istitutional markets are different becuase everyone knows each other...for the most part.
hmmmm. maybe i am wrong on this or dont understand how retail works...but sounds a bit fishy.
Quote from just21:
I was hedging some equity options after hours and got a fair fill, get a call from Interactive Brokers saying the other side wanted to bust the trade but I refused. How can they bust the trade without you agreeing?
because ib does not make the decision. the exchange does. ib will call you up and if you refuse it will go back to the exchange for a ruling. their decision is final and ib has to comply.
Quote from dac8555:
i am curious how big a trade it was and with what instument. normally only big players do things like this. the most common bust goes something like this (in debt markets at least):
1. big orderflow comes in and there is a lots of noise on the trading floor.
2. trader gets a customer order over the squawk.
3. tader announces order to "pecker" or the guy in the middle of the pit entering orders (for slower moving markets, the trader also pecks)
4. trader confirms order to customer
5. customer calls trader a dumbass for selling instead of buying.
6. Trader corrects trade, and get on the horn to bust the trade.
7. The other side lets them off the hook becuse they are old buddies...or tells him to go stuff it.
wait a minute.....did you tell the broker you didnt want to bust the trade? if the broker accepted the bust and stuck you holding the bag...you SHOULD be able to tell the broker that you dont want to bust. If they call you 1/2 hour later....doesnt sound like they gave you the chance. maybe the istitutional markets are different becuase everyone knows each other...for the most part.
hmmmm. maybe i am wrong on this or dont understand how retail works...but sounds a bit fishy.
you are wrong
yes it is different for equities. they have specific rules they follow for the most part. it all starts when one party complains.Quote from dac8555:
actually, i think i am wrong....if you are dealing with an electronic order book or execution, it is different....
My experience is only voice brokered markets.
over the years i have had many stock trades busted and i have had many gifts that were not busted. you usually know when it is a gift.
No fish here...trade was 300 shares of a stock on NYSE...Trade was filled before 9.30...I was given no choice on busted trade, but thats not the worst part... Was made to keep my buy to cover as a buy since short was busted..Why in the world should I have to own a stock that I was shorting? Heres a question..what happens if I bought a stock in my IRA account and sold it and then it got busted...Would I then have a short which is not allowed in my IRA account ?
First off what was the stock symbol and the price and time of trade. 2nd you can go to arbitration to fight this(you have to ask the firm/broker to go this way). It may be too late for arb if they broke it. But you can find out if the trade was broken. I have seen firms break a trade that didnt break on the exchange. Its hard to prove but you must call the nyse and ask if trades had been broken in the stock and what price/shares amount and time the break took place. But to answer your other question if they do break the short and you buy the stock later you are long the stock. They dont break both ends. Each firm has an error acct to toss the trades in for their customers but if your not a high volume trader i doubt they will do this.
Trade was executed about 9.28... Nyse had nothing to do with it since it was done on arca and according to broker, arca busted it...I trade everday but they said couldnt put it in error account because when sec checked their records, get them in trouble..