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At 11:38 AM 8/13/99 -0400, Brad Rylander wrote:
>I'm a position trader, using Ameritrade. I frequently place my orders
>in the early morning with a buy stop a bit above the current close.
>
>Recently I've had several orders cancelled. Ameritrade has told me
that
>buy stops must be placed above the current price and the price has
moved
>above my stop before the 9:30 AM opening..
>
>Is there any way around this problem other than watching the open and
>deceiding from there?
By definition, Ameritrade is correct. If you are placing a Buy stop on
the open at say $25.00 and the market opens above this level at $25.50,
for example, then you would receive an unable or a cancel since a Buy
Stop does have to be above the current
market price to be valid.
Apparently Ameritrade is using, as most all brokers do, the RTH's, open
and close to determine the validity of your stop. To avoid this
problem, you need to be aware of where the stock is currently trading
on InstiNet before placing your order.
The only way around this is to switch to a firm other than the standard
retail discount brokers in order to trade after hours. An example would
be: http://www.tigerinvestment.com/ .
Good Luck,
Rick
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