I bought some ETFs this morning at very low prices. One example is XPH at 81.15. Now it is at 112.75. How do I find out if the trade will be busted? What is the latest time I would find out if trades like this would be busted? Is there somewhere on the Nasdaq site where I can find out more info about trade busts for today? .
Previous threads which may provide an answer: http://www.elitetrader.com/et/index.php?threads/trade-busts.137405/page-2 http://www.elitetrader.com/et/index.php?threads/filled-after-a-30-drop-in-less-than-1-minute.244894/ .
http://www.nasdaqtrader.com/Trader.aspx?id=MarketSystemStatus&cid=topnav Pursuant to Rule 11890(b) NASDAQ, on its own motion, in conjunction with BATS, and FINRA has determined to cancel all trades in security Blackrock Capital Investment. (BKCC) at or below $5.86 that were executed in NASDAQ between 09:38:00 and 09:46:00 ET. This decision cannot be appealed. NASDAQ will be canceling trades on the participants behalf. http://finance.yahoo.com/quotes/BKCC .
Well I think that answers your question, sorry about that! NYSE allowed their stocks to open before finding equilibrium, 'ah the good old days of waiting twenty minutes to two hours for the Specialist at SPLK to figure out where to open up a stock. It's not the first time a stock has been busted, we all have had many shares busted! It's not fair because you put your risk-capital to purchase these stocks, today the ETFs associated with the IBB fell off a cliff, in 2008 there were many bond funds by Pimco, Alphine, John Nuveen and Loomis Sayles I bought when they fell off a cliff because many could not calculate their MBS, ABS and other income-instruments so they stopped paying dividends for a few months. I bought a big block of PHK, dividend was suspended, nobody was attending any auctions to purchase certain debt and wrongly they assumed all interest bearing assets were going to zero! Since NYSE suspended their rules on a orderly Market, why can't you keep your stock? This was no Emulex where several of the members here on Elite bought 2000 to 10,000 shares at $49 only to have their trades broken when the went back up to $125. Do you remember the story of Emulex and the poor little kid who hacked in the AP and disseminated a half-ass press release saying "Emulex cooked the books!". Now how come Knight Capital was unable to beg the Exchanges for mercy when their computer servers went nuts three years ago and blew them up? Knight lost $500 million in 38 minutes as its servers drove stocks up to prices way up in the sky only to get shorted by Ichan, Ackman and other professionals besides the Market Makers (Goldman, JP, MLCO ect.).. Good Trade, I hope they don't break my option trades, that would be outrageous if they did, the Specialist pushed Facebook book down to $70, it's his fault, not ours! Cheerio!
RabidTrader, My XPH purchase has not been busted (yet). Given that the trading day is over, I am hoping that doesn't change, given that I have already sold the ETF. .
Why was I looking at Blackrock Kelso income fund? Your trade looks great, please forgive my ignorance and not looking at the big picture. You made a Hell of a Trade, enjoy those profits because there is no logical reason their going to take that from you. The only reason why this ETF jumped was that email sent to Jim Cramer from Tim Cooke. If Tim had not sent that email, you might have taken a loss if this Market dumped. Fantastic trade, it looks fair game!
If someone buys an ETF crashing at $40 (with its correct value at $60) with margin (because the trader sees this a temporary irrational price), that trader can be broke and be liquidated by his brokerage if the same EFT continues to crash all the way to $1. Now, maybe this gets busted but I certaintly wouldn't want to risk all my trading capital on what some ahole decides. So, it seems to me that they key to play these is to never buy so much that you could suffer a margin call in case the security went to a penny
Yes, good advice Daal. Even though the trader knows it should recover to $60 in a few minutes / hours, the decline to $0.01 risk is there. .
Blackrock report on the events of 24 August: source: www dot scribd dot com/doc/284039757/Viewpoint-Us-Equity-Market-Structure-October-2015 http://seekingalpha.com/article/3558756-u-s-equity-market-structure-lessons-from-august-24 There is discussion on page 12 about trade busts. Exhibits 9 and 10 are relevant to that discussion. .