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Well Said!!! Having been a broker, this is exactly what happened. Tuition
can be costly, but we rarely forget the lessons!
Mark D. Jala
-----Original Message-----
From: Al Taglavore <altag@xxxxxxxxxxxx>
To: diamond@xxxxxxxxxxxx <diamond@xxxxxxxxxxxx>; MetaStock-list
<metastock-list@xxxxxxxxxxxxx>
Date: Wednesday, February 04, 1998 1:59 PM
Subject: Re: After Market Closes Trading
>Nothing shady. Stocks trade aftermarket on Instinet, which is a privately
>operated computer only trading entity. Just like if I wanted to sell you
>some stock at an offer price and you accepted it. Bonds, currencies, and
>the S&P trade on Globex almost 24 hours a day. Most all major world
>exchanges have after hour trading. As to your friends stop order. A stop
>order becomes a market order when the security trades at or thru the stop
>price. Therefore, when the market opened gap down, your friends order was
>treated as a market order and filled at the price prevalent at the time.
>This can happen any time a security opens gap down from the previous
>regular session market close. If your friend did not choose to sell at the
>market open, (CNBC had widely announced the earnings disappointment) he
>could have cancelled the stop BEFORE the market opened. I have been there
>several times. Treat it as tuition.
>
>Al Taglavore
>
>----------
>> From: diamond <diamond@xxxxxxxxxxxx>
>> To: MetaStock-list <metastock-list@xxxxxxxxxxxxx>
>> Subject: After Market Closes Trading
>> Date: Wednesday, February 04, 1998 9:47 AM
>>
>> A friend of mine bought 2000 shares of IOM at $12.25. He put in a stop
>> loss. Because of a 2 cent dividend loss, the stock dropped to about $8.00
>> in one day and he lost about $8000. The thing I don't understand, is that
>> it was traded after hours. My friends stop-loss was useless.
>>
>> Can someone verity this? Can stocks be traded after wall street has
>closed
>> for the day? Is the stop-loss only good during market open hours?
>>
>> I can't seem to find anyone in my area who knows about after hours
>> trading.* I thought all trading stopped after the market closed. It does
>> seem a bit shady if it is true. It gives someone somewhere a big
>advantage.
>>
>> Regards
>> Zane Koir
>> Abilene, Texas
>> *
>>
>
>
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