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David:
I guess your initial wording of the question was a bit confusing. I was under
the assumption that you were placing the order Market on Open and did not have a
resting GTC stop in place prior to the price trading through your stop. If this
is true, then I can see your dilemma...
David Elden wrote:
> I don't agree with you, If I have a stop in the market, and the market
> opens above the stop, then the open would trigger my stop and I should get
> the open price, not cancelled. If the market is trading above my stop when I
> enter it then I might as well be entering a market order, but the stop
> should not be cancelled. The market has traded through my stop. So what if
> it happens to be on the open? That is what opening runs are all about.
> People throw stops in from the night before, and they all get hit at once
> on a higher open. A buy stop is a buy stop.
>
> David Elden
>
> -----Original Message-----
> From: Rick Francis [mailto:rcfran@xxxxxxxxxxxxx]
> Sent: Saturday, August 14, 1999 10:19 AM
> To: omega-list@xxxxxxxxxx
> Subject: RE: Buy stops and after-hours markets
>
> 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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