Hi! On IB, on pending orders (stop losses) just appeared a warning sing with this text box: For stocks that have this, (Applovin, right now is 15% in red) will I have a problem to sell and get out of the position if the stp price is triggered? Thanks!
The rule is: The 2010 alternative uptick rule (Rule 201) allows investors to exit long positions before short selling occurs. The rule is triggered when a stock price falls at least 10% in one day. At that point, short selling is permitted if the price is above the current best bid. So you might be fine.
That stock was above $400 last week, wow! Now ~$340. A super-parabola, on the weekly chart. Did the rocket motor run out of fuel, or is it just another booster stage getting ejected in preparation for another blast of FIRE AND FURY!? You be the judge!
If you are long, that message does not apply to you. That message only applies to people who are trying to open new short sell positions when they don't already hold the stock.