As I said, I'm not claiming to be 100% certain, I've never placed marketable limit orders that would be way above the NBBO. It's probably true that if you are way off the NBBO then the order will be rejected, but not if you are within a certain %. From 14 to 16 doesn't seem like a big deal, but obviously from 0.5 to 2 is a big deal... In any case, I guess the best way to settle this would be to go out and place some orders and see what happens. Any volunteers?
I'm not pushing IB. They have their good points and their bad points (as all firms do). But I do like some of their recent programming upgrades. For example, they now have a feature which allows you to indicate your maximum trade size (shares and contracts) and if you place an order exceeding that, it flags it with an add'l confirmation screen. So if it's set at 1,000 shares, you CAN'T inadvertently place a 10,000 share order. These features might seem over protective for the casual trader but when you have a day when the orders are flying, every tool that reduces human error is a bonus.
Sounds like a good idea. I wouldn't say it's overprotective since its not required to set that from the sound of things. Probably helps people stay somewhat disciplined too I'd imagine
OK, I volunteer. I'll under bid for buying and over offer (?) for selling. You take the other side and we'll see how we do