Personal Finance & Money Asked on January 31, 2021
I placed a trade for stock XYZ with broker 123 from bank ABC (which is part of SIPC)
This was BUY trade for $100. Stock for XYZ went down to $99.45 and closed at $99.80. Trade was never executed.
I asked bank ABC to CANCEL the trade because I did not know what was going on. Before I cancelled the trade another Broker, call him 456 said the trade was placed at $99.39.
But I had written confirmation that the trade was placed for $100!!!!!!!
I am still perplexed.
This morning I called another Broker, call him 789 who also said the trade was placed for $99.39, but is now cancelled.
Then I called the original Broker, 123 who confirmed the same.
Before I call Broker 123 and ask what happened, can any of you tell me why this would have happened?
And now the stock went to $100.35
Just because a stock trades below your buy price does not mean that it should or always would get filled.
A possible reason that a trade does not execute is that the B/A spread is very wide. Suppose you have a buy order for $100 and the stock is above this price all day. The stock then drops to $99.80 x $100.10. Your limit order will not execute because it's lower than the market ($100.10) and therefore it's not marketable. However, someone sells at $99.80 and therefore the stock closes at a lower price than your order's higher price.
Another possibility is that you placed your order incorrectly.
Or perhaps it was an All Or None (AON) order and there weren't enough shares to completely fill your order so you got none.
If everything was done correctly, check Time & Sales to see what the bid/asked quotes were after your order placement. If none of the above possibilities apply, then it's possible that you have a lousy broker and should find a better one.
Answered by Bob Baerker on January 31, 2021
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