Trade busts

[jbusse]

My busted trade from today:

9:35 Buy 1200 MI at Pegged Bid (Limit: 21.00) on ARCA - Reserve(Show=100) Executed 6bb22f52-c6-00gm
9:35 Busted: Bought 100 MI at 18.100000 with PSE-LA-EBAYTA (order 6bb22f52-c6-00gm) Deleted 6bb22f52-c6-00gm-2
9:35 Busted: Bought 100 MI at 18.100000 with PSE-LA-EBAYTA (order 6bb22f52-c6-00gm) Deleted 6bb22f52-c6-00gm-3
9:35 Busted: Bought 100 MI at 18.100000 with PSE-LA-EBAYTA (order 6bb22f52-c6-00gm) Deleted 6bb22f52-c6-00gm-4
9:35 Busted: Bought 900 MI at 18.100000 with PSE-LA-EBAYTA (order 6bb22f52-c6-00gm) Deleted 6bb22f52-c6-00gm-5
9:45 Sell 1200 MI at 26.69 on ARCA (1200 traded @ 26.6900) Executed 6bb22f52-c6-00h5
9:47 Sold 100 MI at 26.690000 with PSE-LA-EBAYTA (order 6bb22f52-c6-00h5) Completed 6bb22f52-c6-00h5-2
9:48 Sold 61 MI at 26.690000 with PSE-LA-EBAYTA (order 6bb22f52-c6-00h5) Completed 6bb22f52-c6-00h5-3
9:50 Sold 239 MI at 26.690000 with PSE-LA-EBAYTA (order 6bb22f52-c6-00h5) Completed 6bb22f52-c6-00h5-4
9:50 Sold 761 MI at 26.690000 with PSE-LA-EBAYTA (order 6bb22f52-c6-00h5) Completed 6bb22f52-c6-00h5-5
13:16 Sold 39 MI at 26.690000 with PSE-LA-EBAYTA (order 6bb22f52-c6-00h5) Completed 6bb22f52-c6-00h5-6

I was notified of the bust at 2:30pm. The stock had appeared in my RealTick screen as a long position all day. By the time I was notified, I had already sold what had appeared to be a long position for a $10K profit. Since the purchase was busted, the subsequent sell left me with a short position. However, the stock (MI) is on the SEC's list of 799 stocks that cannot be shorted, so my broker said I had to cover the short ASAP. By this time, the stock was trading around $27.50, which translated into a $1K loss. Was able to hold off covering until it dropped to $25.53, so at least I ended up with a small profit. Bottom line was my second most profitable trade of the day disappeared without any explanation for the bust. The most annoying thing about it is if the initial purchase had executed at $18.39 instead of $18.10, that price would have fallen just within 20% of the prior day's close, and the trade would not have been busted. Such arbitrariness makes one question the integrity of the exchange.

 

[Wayne Gibbous]

Quote from Scalper007:

I'll tell you how the market works:

1. If the market makers lost money, your trades will get busted.

2. If the specialists lost money, your trades will get busted.

3. If you make money you have to give it back.

4. The market is there to take your money. Not to give you any.

5. Ultimately, if you lost money, your trade will NOT get busted.

Did any one of your losing trades ever get busted!?!?

I'd rather go gamble at a casino. At least they don't bust hands there!!

This is, unfortunately, too damn true.

This wasn't some AH fat finger shit. This was a whole lotta people trading. And they were trading for a long time. I wish a big trader with some real bux and a few baddass lawyers lost enough to class-action sue the bastids. Of course, maybe THEY are the ones doing the busts!

Just got thru the list. Yep, they got me:

sold IAI for 34.83. Now at 31.6
sold IYG for 89. Now at 80.87

The thing is, those trades were done about 10-15 minutes after the open. There was a hell of a lot of trading. It's called "price discovery", not "you made too much so give it back".

Oh well, not a lot of money. But it still pisses me off. It's hard enough to make good trades in this market (at least to balance all the bad ones). And I get 'em taken away....

 

[sprstpd]

Friday has got to go down as one of the most ridiculous trading days ever in recent history. The amount of bullsh*t streaming out of our financial markets is at all time high.

 

[Trendytrader]

Quote from Scalper007:

I'll tell you how the market works:

1. If the market makers lost money, your trades will get busted.

2. If the specialists lost money, your trades will get busted.

3. If you make money you have to give it back.

4. The market is there to take your money. Not to give you any.

5. Ultimately, if you lost money, your trade will NOT get busted.

Did any one of your losing trades ever get busted!?!?

I'd rather go gamble at a casino. At least they don't bust hands there!!

The reason that the exchanges should only be cleared electronically between buyer and seller. No middlemen aka MM or specialists. Damn near every other exchange in the world is fully electronic...time for the US to catch up.

 

[sprstpd]

Quote from Trendytrader:

The reason that the exchanges should only be cleared electronically between buyer and seller.

How many of these trade busts were electronic trades? - I am guessing a fair number. Electronic trading does not guarantee that you won't get screwed over by a late and incomprehensible bust.

 

[Cutten]

Quote from arbprofit2:

Pretty sure it's just 20% on the stocks listed, not 20% on all stocks. GS for example was more than 20% without busts.

Yeah that's what I meant - the stuff on the bust-watch list.

 

[USAtrader]

Sold KRE shortly before market Friday at prices 48-52 and again 58-59. They busted the 58's and adjusted them to 51. Amazing how these totally legit / non-erroneous fills in all those stocks listed were simply busted outside of the 20% range on a day like Friday.

When I eat some ridiculous bid on a normal day, that's obviously an error, I expect to be busted later on, but from Friday's trading, given the volatility, the adjustments were ridiculous on most of the ones I saw.

 

[sprstpd]

Quote from USAtrader:

Sold KRE shortly before market Friday at prices 48-52 and again 58-59.

USA to USAtrader: "Up yours shorty."

Shorts are targets until there are none. Then the market crashes like there is no tomorrow.

 

[USAtrader]

Does feel that way sometimes. Though, the sellers up there in all those adjusted stocks were made up of both natural sellers and shorts. Both take it up.

Quote from sprstpd:

USA to USAtrader: "Up yours shorty."

Shorts are targets until there are none. Then the market crashes like there is no tomorrow.