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> Its always been my impression that "stop" orders automatically become
> "market" orders once your price is hit, but apparently this isn't the
> case because sometimes they come back as "unable."
There are three possibilities here:
a) you're using a limit order ("Buy at 350.00 or lower") or a
stop limit order ("Buy at 390.00 stop, limit 390.50") and the
market either didn't trade at your price, or it traded in and
out under "fast" conditions and the floor doesn't want to or
couldn't fill the order.
b) the indication that you got that the market traded at your price
was wrong. Sometimes in some markets, ticks are reported that
didn't actually occur. Frequently these ticks are so absurd that
they're obvious; other times they're just beyond where the market
really went. Can you say... "energies, foods and fibers?"
c) the market really did trade at a stop order's price, and
somebody missed your order and didn't get it executed.
If what happened was (a), then unless you can get some evidence that
your side of the trade actually traded at that price, there's nothing
to suggest that the market actually filled buys at your low price, or
sells at your high price.
If what happened was (b), then the market never actually touched your
price which is why you got "unable".
If what happened was, you suspect, (c), then have your broker
check time and sales from the floor for you. This is a simple and
client-painless request, and it shouldn't take long to figure out
what happened. If there really was a transaction at your price but
the floor said "unable", then someone will have to eat your fill
because you WILL get one, even if it comes later in the day. Don't
spend days brooding before investigating, though; do it right away
when you think there's a problem.
(Nobody read this part)
Every good full-service broker should be on the trail of this one even
before the client gets perturbed, IMO. If they don't follow up on these
anomalies during the trading day for you, ask 'em why not!
(okay, you can start reading again)
You're right: a simple stop order does become a market order when
the market trades at the designated price. You WILL get filled on a
stop, either at the time the market trades there or after you have
somebody find and fix the mistake. The fill may not be pleasant, but
it should always exist.
Sticks
--
Troutman, Defender of Sticks (aka) Jonathan Matte, President
troutman@xxxxxxxxxxxx Defender Capital Management, Inc.
Introducing Broker
http://www.teleport.com/~troutman
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