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The problem when you place an order even a limit order on Datek (or any
place else for that matter) will become a market order when the limit
price becomes marketable. If you placed a market order over night you
lost that 1.5 not the brokerage firm.
Although with a short I am surprised that the order was placed. From my
understanding with Datek if you place an order to sell short and is not
filled before the stock moves to a down tick you have to re-enter the
order. The system kicks it out on the NASDAQ. Of course it is diffeent
for the NYSE.
The other problem is that there is a priority for executing trades on
the NYSE. I may have the order wrong but it is time, size and price.
This will effect your fill with a market order.
I know i didn't give you any real details but hopefully enough of a
general idea that there are these gray areas that come up now and then
when we place our orders.
I also found out from Datek that they can execute your order prior to
the market open if it is left in over night. When I spoke with customer
service he said it doesn't always happen, but does from time to time.
And the earliest that he had seen was 5 minutes before the open.
Harley
Darryl D'Lima, MD wrote:
>
> Hi Jim,
>
> When you buy at the open, do you place an order overnight and how often
> do you get a reasonable price? I have always bought/sold at a specific
> price until recently when I placed an overnight order to sell short at
> the market open price. The stock did go down, based on the difference
> between the recorded opening and closing prices but my order was filled
> at a full 1.5 points (5% of the price) below the opening price. I use
> Datek and have always trusted them, but is this acceptable slippage?
>
> Has anybody else had this experience?
>
> Darryl
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