Do brokers generally refund the commission when a trade gets busted? I'm talking just about the original, busted trade, not the subsequent suddenly-naked trades to close that we have to buy back.
If a trade is busted for the right reasons, then the commissions are refunded. If the trade is busted or altered and you are given a new trade at a different price, you only pay for the 1 trade as well.
Thanks. The stated reason for busting my buy was that the underlying stock had a delayed open and the option should not have been trading. So 70 minutes after I had bought it and 30 minutes after I'd sold it, the initial buy was undone and I found myself short. After doing a third trade to cover, I wound up with a small net loss. Watching a several hundred dollar profit taken away from you and turned into a potential loss has got to be one of a trader's worst nightmares.
An unpleasamt experience, no doubt. I'm sure folks have lost 10's of thousands and more under similar cicumstances, if that makes you feel any better. Sometimes it pays to be a piker
Is there a good way to externally confirm an order, to ensure that such an event does not occur? Cheers.
Unfortunately, there is no exact way to tell if your order is going to be broken. A good rule of thumb is that if your brokerage firm has not called you within 30 minutes of the trade, then it will most likely stand.
Htrader, That is not always true. A few weeks ago I closed a future position at 09.30 am. After the market was closed, 05.30 pm, they busted the trade. Off course this doesn't happen often. Observer
You guys might want to check with Island to see how they handle trade "busts"...It is a rather lengthy note, yet worth reading if you use them much. I checked it out today for a trader, and was a bit surprised...