Government rule??????

Discussion in 'Retail Brokers' started by vetten, May 27, 2005.

  1. vetten

    vetten

    okay hotspot, eh hotshot

    thank you for your reply and it sounds very common sense to me
    like you said that the brokers simply dont want to run the risk.

    thank you for your time

    you too have a primo day:)
     
    #11     May 27, 2005
  2. Since 1998 it's been a requirement that all traders be licensed or else they have to come under the "retail brokerage customer" rules.

    If you are licensed, and part of a trading firm, then the rules don't apply. For example, our traders may use $5million of our capital to place "opening only" orders (to try to make a few hundred on the opening each day). We determine what a trader with $25K can or cannot do, not any "rule".

    Just FYI.

    Don
     
    #12     May 27, 2005
  3. alanm

    alanm

    To address the actual question, IB (www.interactivebrokers.com) will let you place many (non-marketable) orders that total more than your buying power.

    Each individual order must be less than your buying power. Once you get a fill, they will automatically cancel any open orders that then exceed your new buying power. I don't know if it's different for OTCBB, but I doubt it.

    Keep in mind that, if you do get filled for more than your buying power allows, they will immediately attempt to liquidate positions until you are properly margined again. This could be very bad, given the nature of the OTCBB market.
     
    #13     May 27, 2005
  4. vetten

    vetten

    thanks alanm for your contribution:)

    I do wish that IB would let me trade those penny stocks under 1 cent, but they dont.

    I`m not afraid that all my limit orders would be filled.
    I just want to do a lot of bottom fishing and thats why I want to place a lot of limit orders.

    Now I only mangage to buy $ 10,000 per WEEK at the moment
    and once the shares come in, out they go.
    So the chance to have all my limit orders filled is there, but quite
    remote.

    Unfortunately my broker hasnt got IB`s system so I`m looking for an other broker that has a similar system.

    :confused:
     
    #14     May 27, 2005