Brokers and filling illegal orders

How far can a broker fill an order away from your limit price before it is considered illegal in terms of percent? Is their any set standard the SEC regulates?

 

zero. it is a limit order.

 

I put a limit order at 16USD per contract they filled it at 14 USD per contract, and they bought it for me while the value of the contract was going down even though I wanted to buy the contract while it was going up! Can I pursue legal action for doing something like this?

They filled the order more than 10% away from the limit!

 

You are joking, right?

A limit order is properly filled at the limit or better. You received a much better fill than your limit.

 

You need to learn the difference between a limit order and a stop limit.

 

No, but that limit order was bought while the value of the contract was going down in value and it went down all the way to 9 Dollars per contract. That order was not put their so that I can buy a falling knife.

 

Then you shouldn’t have put a limit order. You messed up, its not the brokers fault. When you place a limit order for 16, that is saying to buy at no more than 16. So anything 16 and less is fair game.

If you would have but a stop or stop limit at 16, then it would have waited for the price to first hit 16 before executing the order.

 

This is the beauty of trading. Anyone - and anyone - w/ some money and open an account and do this.

If you don't know what a limit order is, that's your fault. LEARN then trade. Not the other way around.

Limit tells your broker - fill me here OR better. You got the 'better' fill and you should thank him for doing that for you.