decimal points in placing limit orders on stocks
June 30, 2009 10:11 AM Subscribe
Why doesn't Questrade let me place Limit Orders on stocks beyond two decimal points, when on these same stocks they display the price wth 4 decimal points?
For example, I wanted to place a Buy Limit Order on a stock, and entered a limit price of 1.1533. The order was rejected, but a order at 1.16 was accepted.
They display the current price at 1.1533, so why couldn't I BUY it at 1.1533?
For example, I wanted to place a Buy Limit Order on a stock, and entered a limit price of 1.1533. The order was rejected, but a order at 1.16 was accepted.
They display the current price at 1.1533, so why couldn't I BUY it at 1.1533?
I'm wondering if you might be looking at the VWAP or something other than the last trade. US stocks trade in round pennies, and the only price field on my quote screen that goes out further than two places is the VWAP (volume-weighted average price).
posted by malocchio at 11:45 AM on June 30, 2009
posted by malocchio at 11:45 AM on June 30, 2009
Response by poster: I'm in my Questrade account, and when I click for a quote, I get 4 decimals. For example FNM is right now 0.5813. Fannie Mae, that's a US stock.
posted by Penelope at 11:53 AM on June 30, 2009
posted by Penelope at 11:53 AM on June 30, 2009
Yeah, I was mistaken in regard to stocks that trade beneath a dollar - they go out four digits, exactly as zerzura says.
posted by malocchio at 12:24 PM on June 30, 2009
posted by malocchio at 12:24 PM on June 30, 2009
Response by poster: Maye Q-trade does on less than $1 stocks, I haven't tried that yet.
Another question: what did GM close at on its last day on the nyse? And did shareholders receive one share of GMGMQ for every share of GM they had?
posted by Penelope at 12:26 PM on June 30, 2009
Another question: what did GM close at on its last day on the nyse? And did shareholders receive one share of GMGMQ for every share of GM they had?
posted by Penelope at 12:26 PM on June 30, 2009
Response by poster: Yet another question...why are AIG, C, etc all down today? THanks for any answers.
posted by Penelope at 12:30 PM on June 30, 2009
posted by Penelope at 12:30 PM on June 30, 2009
I believe GM was delisted on June 2 - closing price on 6/2 was $0.61 (close on 6/1 was $0.75). The delisting shouldn't affect the number of outstanding shares, but these are exceptional times, so there may be something I missed.
I don't see much specifically about C today. Financials in general are taking a hit due to regulatory issues facing STT and a possible settlement in a civil suit against UBS.
AIG warned yesterday that "if credit markets continue to deteriorate, the company could face unrealized losses on a portfolio of derivatives of AIG Financial Products Corp., the unit largely responsible for the parent company's collapse. "
posted by malocchio at 1:16 PM on June 30, 2009
I don't see much specifically about C today. Financials in general are taking a hit due to regulatory issues facing STT and a possible settlement in a civil suit against UBS.
AIG warned yesterday that "if credit markets continue to deteriorate, the company could face unrealized losses on a portfolio of derivatives of AIG Financial Products Corp., the unit largely responsible for the parent company's collapse. "
posted by malocchio at 1:16 PM on June 30, 2009
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Similarly, when you place a regular buy order (as in a "market buy"), you won't necessarily get the price quoted. You'll get the price at which your broker executed the trade on your behalf.
So it's not really surprising that your broker doesn't take limit orders to four decimal places--doing so would be meaningless.
The story would be different if you were running a major program trading strategy, but you also wouldn't be asking your question here or using a discount brokerage if that were the case.
posted by mullacc at 11:26 AM on June 30, 2009