NYSE rule on orders

I have a question.
I have noticed that my broker will not let me place a buy order - resp a sell order - more than 30% - resp 50% - away from the last traded price.

Is this a NYSE listing rule, or just the broker policy ?

Thank you.

JRKOB.

 

I'm not aware of any restriction like that from the exchange. You should be able to bid $1.00 for a stock trading at 100. In fact, to test it, I just big $1.00 for 500 shares of SPY and my order went through.

 

Thanks for the response rmorse.

Looks like it's a restriction from the broker.

Cheers.

 

It is possible they are trying to reduce unwanted order flow but it is also possible the are trying to catch orders not placed properly. Hard to tell.

Bob

 

Many brokers try to protect you from making money with risk checks like this designed to protect people from being morons. Frustratingly, they often don't have a general process to opt out of such "protections".

 

I can name three that will not let you post orders out 30% from the last trade. I don't like that limitation because I have had some stocks I own go up very fast and fall quickly. If they don't let me put my orders out (HFTS Malfunction Insurance) its time to move on! Its not the NYSE or other Exchange Rules, the Brokerages are just being silly!

 

Can you share which ones ?

 

Fidelity is one of them, they will prevent you from placing orders too far away from the Market.

 

IB has a dynamic "feature" that's so restrictive it sometimes won't even let you hit the bid/ask or put in a market order to close an existing position if their algorithm in its wisdom decides the spread is too wide. Try some out month corn futures orders on the paper trade account to test it out.

 

Sig, why are they so paranoid or restrictive, is it because of all the money they lost during the Swiss-Euro trade? They lost $300+ Million is what I read, are they become scared?