Hey fellas - I'd appreciate the input on what happened to me After Hours today: 4pm, BOT 100 ERTS@52.89 they announce earnings and a crap outlook which halted the stock until 4:30 A bid for 51.70 remains on the inet book, so i put an order to sell @ 51.70 @ exactly 4:30:00 Order gets filled, and the stock immediately begins trading at 46, (and remains 46-49 for the remainder of the session). 15 mins after execution, I get a call from Cybertrader saying that INET might have to bust the trade since the proper quote not have been represented at the time. Can they do that? sounds like BS to me. My question is should my gripe be with Cybertrader, whose platform accepted and executed the order without a problem or INET? Thanks
as soon as i posted the thread i notice CyberTrader's ad for the free "Timing the Trade" seminar. I don't think I'd buy it if they eff me outta this one...
This isn't BS. You can't sue Cybertrader becaused you signed agreements or papers when you opened an account saying you wouldn't hold them liable for something like this. All brokers have you sign these. Anyway it has nothing to do with Cybertrader. The person on the other side of the trade who got F***ed called INET to bust the trade. If the trade is a certain percentage away from where the inside market was at the time of the trade they can bust the trade. However since this was an after hours trade, it is hard to determine the inside market in afterhours because volume is so thin, so you might have a slim chance that they don't bust the trade.
Well I've been on the other side of this deal before too - I agree that it would make more sense during market hours, but I'd be real surprised if they busted it since there is no true inside/outside quote system AH. No doubt he's pissed, but if he put an AH order out there ona halted stock it's his own fault. Last week I covered my INSP short AH at 42 1/2, next trade was at 38 so I don't feel so bad this time...
INET is self regulated org. they can do pretty much whatever they want. even if it goes against their own policy. with their 20 min limit time for request for bust trade, i've see trades busted 2 days after with no problem. probably it does depends how big the man on other side.your broker have nothing to do with it. he just follow INET. if INET bust trade-they will remove stock from your account. read their and your broker policy before you think about case.
It sucks to lose money like that, but what the hell were you thinking buying a stock 30 minutes before earnings come out?? No offense, but that is just plain stupid !!
yeah i just eff around with 100 share lots for AH earnings plays. Plus I was up pretty good on the day from the MORN ipo so I had my stupid ballz on...
well, they called back and let me know the trade could stand as is. I'm sure the dollar amount wasn't worth the trouble, but it saved me $500...
it's beyond ballsy to enter into a position afterhours on a stock RIGHT before earnings announcements. You'd have a better chance and more fun gambling. Unless you have the inside info.
You don't have a case if your order is time stamped at the exact time as the halt was given. Sucks, but thats the way the rule is written. If the time was 4:29:59, then you would have a case.