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Zecco.com » General Investing » New Investors » stop order executed for no reason!?
Last post 05-19-2008, 3:16 PM by Zecco Editor. 8 replies.
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  •  05-16-2008, 1:23 AM 29198

    stop order executed for no reason!?

    Locked
    Here is a weird thing that happened to me.

    Today, my sell stop-order for USMO (@7.24) was executed at the opening (9:31am) @7.78
    My question is: how is that possible if the daily range was 7.65 - 7.90 ???

    The only explanation I can think of is that  the price did drop below my stop during pre-market trading but I thought Zecco didn't participate in pre-market trading.

    Can anyone explain this?
    Thanks.


    --- 5/19/08 update ---
    Here is the reply I got from customer service. Kind of interesting:

    Thanks for contacting Zecco.  I have looked into your issue with the execution of USMO this morning and have found that the opening bid/ask was 7.03 by 7.70 and this is what triggered your stop.  There was also a .15 dividend paid and you were being watched at 7.48.  Either way you would have been triggered with this opening bid/ask.  A little complicated but this is a good fill.

    So two things happened. First, the opening bis was super low. No trades happened at that price but it did trigger my stop. Second, the price dropped because of the dividend which I should have been aware of and lowered my stop. Hopefully, I will still get the dividend on 6/15 when it's getting paid out.
    The stock yields 12%.

  •  05-16-2008, 2:55 AM 29203 in reply to 29198

    Re: stop order executed for no reason!?

    Locked

    Very weird... it's not like it came up from low ~7's either. don't have a clue, I hope this doesn't happen to me, if you find out please enlighten us

    and that sucks cuz it came up at the end of the day to =/

  •  05-17-2008, 1:33 AM 29263 in reply to 29198

    Re: stop order executed for no reason!?

    Locked

    I had exactly the same experience on 5/14 :

    Stop limit on NEON (set on 1.24 - 1.23) was executed at opening 9.36am @ 1.40.  Closing the day before was 1.37.

    I asked in another forum (not on Zecco) what could be the reason and one suggested that the problem could be situated at the broker.  This does normally not happen.  As it seems I'm not the only one, I'm starting to think the problem could in fact be Zecco ???

    Such situations are not good for your Confidence ...

  •  05-17-2008, 7:02 AM 29274 in reply to 29198

    Re: stop order executed for no reason!?

    Locked

    Hello iggy sounds like Zecco has a problem. You need to speak to the compliance department at Zecco.Don't waste you time talking to customer service ask to speak to someone in the compliance department who can research you trade.

    I have been charged margin interest even when I did not buy anything on margin.Customer service went round and round with me for a month until I filed a complaint with the SEC and within a few days of Zecco getting the complaint from the SEC the compliance department at Zecco found the problem was theirs and credited my account.

    Here is a link to the SEC it is  www sec gov  if that link below does not take you there.

    http://www.sec.gov/

    Good luck

  •  05-17-2008, 1:31 PM 29279 in reply to 29198

    Re: stop order executed for no reason!?

    Locked

    I don't use stop orders, but it is my understanding that, unlike a limit order, a stop order becomes a market order when it is triggered.  Thus, it is possible (and not unusual) to see stop orders executed lower or higher than the stated price because it is subject to the market AFTER the tiggering event.  Now, unfortunately, there are phantom trades resulting from erroneous data getting into the trading systems, and such can trigger stop orders (read the disclaimers).  These phantom trades, of course, never occurred, but sometimes show up in charts, etc., sometimes not.  For an example, look at CIRT at http://stockcharts.com/ and you'll see a high of .007, but a look at 1 day chart of CIRT at http://bigcharts.marketwatch.com/ sees no such trade (obviously a misplaced decimal).

     

  •  05-18-2008, 4:00 AM 29301 in reply to 29279

    Re: stop order executed for no reason!?

    Locked
    You can also use a stop limit order.  It will trigger an order when the stop is hit but the order will be a limit order at a price you specify instead of it being a market order.

  •  05-18-2008, 10:51 PM 29332 in reply to 29198

    Re: stop order executed for no reason!?

    Locked
    iggy:
    Here is a weird thing that happened to me.

    Today, my sell stop-order for USMO (@7.24) was executed at the opening (9:31am) @7.78
    My question is: how is that possible if the daily range was 7.65 - 7.90 ???

    The only explanation I can think of is that  the price did drop below my stop during pre-market trading but I thought Zecco didn't participate in pre-market trading.

    Can anyone explain this?

    Once in a while, the market maker or some investors with a lot of money will attempt to shake the market.  They can rapidly buy or sell a lot of shares to cause the price to jump or fall out of the normal trading range for a few nano-seconds.  They do this to mess up trading robots and people with a stop or trade-trigger order.    You are lucky that you didn't lose much.

  •  05-19-2008, 12:57 PM 29357 in reply to 29279

    Re: stop order executed for no reason!?

    Locked

    You are right. The order executed as a market order. Make it stop limit next time to prevent

    this from happening again.

     

    I do not place market orders.

  •  05-19-2008, 3:16 PM 29364 in reply to 29198

    Re: stop order executed for no reason!?

    Locked


    Dear iggy

    It looks like you experienced some issues with your Zecco Trading account. Instead of posting your concerns on the Forums, please contact Customer Service. The Editors at Zecco.com have absolutely no insight into your Zecco Trading account information. Hence, we cannot address your concern here. To contact Zecco Trading customer service:

    Email: customerservice@zeccotrading.com
    Fax: (909) 657-6638
    Phone: 877-700-STOCK (877-700-7862)

    Thank you for your understanding,

    Zecco Editor
     

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