Government rule??????
- Thread starter vetten
- Start date
Quote from vetten:
thank you don for your time to point that out to me.
so no margin for my penny stocks!
now I know you have a lot of experience in trading.
what do you reckon:
I`m not wanting margin on these penny stocks, but
is there a government rule that forbids brokers to let me place limit orders for say $ 80,000 while having $ 40,000 cash in the account?
your opinion is much appreciated
have a primo day
Since 1998 it's been a requirement that all traders be licensed or else they have to come under the "retail brokerage customer" rules.
If you are licensed, and part of a trading firm, then the rules don't apply. For example, our traders may use $5million of our capital to place "opening only" orders (to try to make a few hundred on the opening each day). We determine what a trader with $25K can or cannot do, not any "rule".
Just FYI.
Don
To address the actual question, IB (www.interactivebrokers.com) will let you place many (non-marketable) orders that total more than your buying power.
Each individual order must be less than your buying power. Once you get a fill, they will automatically cancel any open orders that then exceed your new buying power. I don't know if it's different for OTCBB, but I doubt it.
Keep in mind that, if you do get filled for more than your buying power allows, they will immediately attempt to liquidate positions until you are properly margined again. This could be very bad, given the nature of the OTCBB market.
Each individual order must be less than your buying power. Once you get a fill, they will automatically cancel any open orders that then exceed your new buying power. I don't know if it's different for OTCBB, but I doubt it.
Keep in mind that, if you do get filled for more than your buying power allows, they will immediately attempt to liquidate positions until you are properly margined again. This could be very bad, given the nature of the OTCBB market.
thanks alanm for your contribution
I do wish that IB would let me trade those penny stocks under 1 cent, but they dont.
I`m not afraid that all my limit orders would be filled.
I just want to do a lot of bottom fishing and thats why I want to place a lot of limit orders.
Now I only mangage to buy $ 10,000 per WEEK at the moment
and once the shares come in, out they go.
So the chance to have all my limit orders filled is there, but quite
remote.
Unfortunately my broker hasnt got IB`s system so I`m looking for an other broker that has a similar system.
I do wish that IB would let me trade those penny stocks under 1 cent, but they dont.
I`m not afraid that all my limit orders would be filled.
I just want to do a lot of bottom fishing and thats why I want to place a lot of limit orders.
Now I only mangage to buy $ 10,000 per WEEK at the moment
and once the shares come in, out they go.
So the chance to have all my limit orders filled is there, but quite
remote.
Unfortunately my broker hasnt got IB`s system so I`m looking for an other broker that has a similar system.