TQQQ trade this morning

Bob111 · Oct 17, 2011

http://www.nasdaqtrader.com/Trader.aspx?id=MarketSystemStatus&cid=topnav

http://www.nasdaqtrader.com/Trader.aspx?id=ClearlyErroneous

Bob111 · Oct 17, 2011

Quote from sprstpd:

The rule is use the regular hours busting percentage for > $50 which is 3% and multiply by the leverage in the ETF. TQQQ is a 3xer so 3 * 3% = 9%. 9% would be the break range in this case.

you are absolutely correct. that's why i was really surprised by this decision. it is not a first time i see how they ruled against their own rules. that's why i said-it a fucking wild west in US stock market.

my guess is that they used last price,rather than let say previous day closing price. and since the price did drop relatively gradually-it is considered as a (quote from their own website)-fair and orderly market

mastertrader456 · Oct 17, 2011

Premarket is 6% not 3%

mastertrader456 · Oct 17, 2011

Quote from sprstpd:

The rule is use the regular hours busting percentage for > $50 which is 3% and multiply by the leverage in the ETF. TQQQ is a 3xer so 3 * 3% = 9%. 9% would be the break range in this case.

Premarket is 6%. It only multiplies by 2x for leverage etfs regardles if it is double or triple.

Bob111 · Oct 17, 2011

Quote from mastertrader456:

Premarket is 6% not 3%

read the link once again-

http://www.nasdaqtrader.com/Trader.aspx?id=ClearlyErroneous

Leveraged ETF/ETN securities Regular Trading Hours Numerical Guidelines multiplied by the leverage multiplier (ie. 2x) Regular Trading Hours Numerical Guidelines multiplied by the leverage multiplier (ie. 2x)

sprstpd · Oct 17, 2011

Quote from Bob111:

you are absolutely correct. that's why i was really surprised by this decision. it is not a first time i see how they ruled against their own rules. that's why i said-it a fucking wild west in US stock market.

my guess is that they used last price,rather than let say previous day closing price. and since the price did drop relatively gradually-it is considered as a (quote from their own website)-fair and orderly market

But the prints on TQQQ were at around 74 and the previous close was 79.5. 74 / 79.5 = 0.931... so the prints were less than 7% off. So according to the busting rules (9% range), the trades should stand.

By the way, thanks for the links - they are greatly appreciated.

mastertrader456 · Oct 17, 2011

I stand corrected.....

Bob111 · Oct 17, 2011

Quote from sprstpd:

But the prints on TQQQ were at around 74 and the previous close was 79.5. 74 / 79.5 = 0.931... so the prints were less than 7% off. So according to the busting rules (9% range), the trades should stand.

By the way, thanks for the links - they are greatly appreciated.

right. you both right. somebody got royally fucked. all by the rules. 2M shares 6.5% away from the market-it's a quite a bit of free money