Limit order question

Johnerr

Hi

I have a question regarding limit orders.


I placed a buy limitorder last night (sunday) for a stock that trades on the australian stock exchange.

The closing price on friday was 3.75AUD.

I placed a buy limit order (good for today only) of 3.77AUD.

The ASX opens at 10am, @ 10am the stock in question opened at 3.75,

@ 10:02 the stock was still 3.75, then after this is went up, it continued to go up all day and closed 30% higher than it opened.

I could of made a nice sum of money but when I check my order status while the ASX was open the order status was "open"

The when the ASX closed my order expired, therefore it never got executed.

My question is why did my limt order not get executed if the stock opened @ 3.75, which is below my limit of 3.77?

I've sent an email to my broker, I am awaiting their response.

Is there anything I am missing or have done worng? My understanding is that since the stock opened @ 3.75 and my limit was set @ 3.77 my order should have been executed.

If anyone can explain I would be very greatful.

Thanks
C

gordongekko

You'd need to check the trades to see if it actually traded below 3.77

strmin

Stock opened 3.75 but how many shares traded for that price? Most likely after you placed an order it never traded below 3.77. What is the spread and volume of this stock?

Johnerr

gordongekko wrote: »

You'd need to check the trades to see if it actually traded below 3.77

Hi GG,

The stock opened @ 3.75 at 10am, at 10:02am the stock was still 3.75, then it skyrocketed all the way to 4.90 where it closed. (30% rise)

My order never got executed so I sent Davy an e-mail, I got a phone call explaining what happened.

anyway heres what happened.

I placed limit buy order on sunday for duration good for today only, since ASX was closed this order will be treated when market opens (11am GMT).

Basically when I placed my order it got sent to davy, the girl on the phone explained that because they dont work sundays or 24hrs than my order never got executed.

by the time they do open for business my order had already expired as the ASX was closed.

I told her this was absolute madness, what type of system in this day and age needs human intervention to execute a simple limit order. She said its in the small print there some where. I said this is not good enough, I should never of been allowed place this order since the order would be expired before Davy open for business & if they are going to offer services to exchanges world wide they need to be able to provide this service.

She said they are reviewing the system to prevent this in the future and offered me a free commission trade worth €15,

How about the €1000+ i missed out on because of this stone age system.

I think i will be moving my accounts elsewhere as this is not a acceptable standard.

Has anyone else experience problems like this?

strmin

You should have mentioned Davy. I closed my Davys account after two trades.

Johnerr

strmin wrote: »

You should have mentioned Davy. I closed my Davys account after two trades.

I didnt want to mention any names, give them a chance to tell their side of the story, but was not impressed with the answer so name and shame.

I am thinking of moving accounts to saxo, seem to be miles ahead of irish stockbrokers.

gordongekko

You should ask for the explanation in writing and see what happens. Drop a hint that you are considering going to the regulator about the issue.

Johnerr

gordongekko wrote: »

You should ask for the explanation in writing and see what happens. Drop a hint that you are considering going to the regulator about the issue.

Do you think I have a case? I checked terms & conditions, looks like they cover themselves from all angles


3.4 Trading hours

"The Online Trading Hours may be amended from time to time and while you may be able to access your Davy
Select Online Dealing Service at all times you may be restricted from inputting buy, sell, cancellation or cash
movement instructions at certain times. In general, instructions entered outside Davy’s normal business hours will
not be effective until the start of business on the next business day. You can view the current trading hours for
the relevant parts of this service at www.davyselect.ie."

3.5 Online dealing instructions

this is just a snip taken out

" We will try to execute your instructions to buy or sell securities listed on a Stock
Exchange as soon as is practicable after we receive the instruction, provided we receive the instruction during the
trading hours of the relevant Stock Exchange. On the other hand, if we receive your instructions outside of the
market hours of the relevant Stock Exchange, including during weekends and days on which the relevant Stock
Exchange is not open for business, we will try to execute them as soon as is practicable after the relevant Stock
Exchange and Davy are both next open for normal trading"

gordongekko

No idea but let them worry for a while. Worse case scenario you get nothing. Best case scenario you get more than €15

Johnerr

Ha, I mite do,

Fu*king shares a up to 5.10aud now, im Gona buy them anyway, hold them long term.

The Cuban

Its not just Davy, many brokers use "humans" to execute trades even though you`d think it was all automated. At least you didn't lose any capital, the worse situation is depending on stop losses, they often don`t get executed until 9am because the staff aren't there yet!!
The whole thing is more corrupt and backward than you could imagine

manonboard

I understand the difficulty in IT with their systems, but i shall also be moving from Davy soon.

I enjoy their interface, and I use Google n other engines for finance information.
However I've had so many problems with Davy.
Cant get them to put KDR share online, and one of thier pages have the EURO digit value with the foreign currency symbol.
I lost a 1000 euro trying to re balance as the numbers misled me severely. Months after reporting it,...still no fix.

"5,000 USD"

thats actually 5,000 euros, and the USD is the currency of the exchange in use... HOW is that suppose to be known...

arrowloopboy

What was the spread on that particular stock ,you more than lightly got caught some where between the Mid price and the buy price ,theirs 3 prices the Sell/Mid/Buy ,the listed price could have been at 3.75 ,but the Buy price could have been at 3.78 ,or higher if there was news etc out on the stock you picked,which must have been lightly if it rose 30% in a day .If the above was the case the Buy price was above where your order was at,or Davys could have fcuked up ,either way,you got none .

P.s ,what was the stock in question ?

Johnerr

arrowloopboy wrote: »

What was the spread on that particular stock ,you more than lightly got caught some where between the Mid price and the buy price ,theirs 3 prices the Sell/Mid/Buy ,the listed price could have been at 3.75 ,but the Buy price could have been at 3.78 ,or higher if there was news etc out on the stock you picked,which must have been lightly if it rose 30% in a day .If the above was the case the Buy price was above where your order was at,or Davys could have fcuked up ,either way,you got none .

P.s ,what was the stock in question ?

No Davy's fuked up, the buy price was 3.75, it stayed at this price for two mins when the market opened. trade never got executed because it was never processed it just sat pending on davys i.t systems until human intervention @8/9am and at this time the ASX had already closed.

The stock is a biopharmaceutical company that are developing drugs for a range of skin disorders. the stock got approved in europe for treating EPP, but this was a week earlier it rose 70% on this day and i missed the boat.

Then it dropped off all week, about 40%, so i said i may as well buy a few, then I woke up on a monday morning and it had rose 30%, couldnt believe it.

arrowloopboy

Johnerr wrote: »

No Davy's fuked up, the buy price was 3.75, it stayed at this price for two mins when the market opened. trade never got executed because it was never processed it just sat pending on davys i.t systems until human intervention @8/9am and at this time the ASX had already closed.

The stock is a biopharmaceutical company that are developing drugs for a range of skin disorders. the stock got approved in europe for treating EPP, but this was a week earlier it rose 70% on this day and i missed the boat.

Then it dropped off all week, about 40%, so i said i may as well buy a few, then I woke up on a monday morning and it had rose 30%, couldnt believe it.

That's a load of Bollox ,Human intervention :rolleyes::rolleyes::rolleyes:,Maybe they'd like you to send a telegram the next time you want to buy something,thats not exceptable in this day and age !

magicmoves

Maybe an SOS ))))

Johnerr

arrowloopboy wrote: »

That's a load of Bollox ,Human intervention :rolleyes::rolleyes::rolleyes:,Maybe they'd like you to send a telegram the next time you want to buy something,thats not exceptable in this day and age !

Better hope their not late to work or gone for a smoke break