Pink Sheet Orders?

Discussion in 'Automated Trading' started by edbar, Nov 4, 2009.

  1. edbar


    Someone today mentioned that you cannot submit a market order for a pink sheet stock.

    I don't trade pink sheet stocks, but am considering it.

    Anyone know if you MUST submit Limit Orders?

  2. wutang


    You can use market orders but why do that in a pink sheet. Just get the MM's account number and wire your money over directly. You'll save yourself the commissions.
  3. edbar


    So, you are saying you can use market orders. It IS legal. But it is advisable to use limit orders only.

  4. Occam


    I'm pretty sure it's "legal", as my brokers have suggested it to me before when I've gotten stuck in a delisted position.

    Some ECN's that trade them may not allow non-limit orders, though.

    But in agreement with the earlier poster's sentiments, I can't see a reason to ever use a market order for Pink's, unless the stock in question is absolutely worthless (like less than $1 for the whole position), as the OTC market is highly fragmented and not subject to RegNMS and you'd be subjected to the potential for your order being filled at a bad price.
  5. edbar


    That is very insightful / helpful. Much of that I was not aware of.

    Thanks a lot!

  6. ElCubano


    many platforms require you use a limit order to enter the trade. It is for the good of the client and has nothing to do with any legal issues. You can enter a market order if the platform allows it. Like another poster said the MM's would just double print you to shreds...peace
  7. edbar


    Thank you "everyone" for helping with the market order vs limit order discussion.

    Based on the what I have learned regarding the order types. I see the importance of trading with Limit Orders ONLY!

    Do you know of any brokers that provide the ability to submit a FILL OR KILL order? i.e. if I submit an order for 10,000 shares at .03 or better. The whole 10,000 share order will get filled at .03 or better, or the order will get cancelled.

    Thanks in advance for your assistance!

  8. All (most?) brokers have an "ALL OR NONE" option. Fill or kill is a one shot deal. If you submit it and it can't be filled, your order is cancelled. With all or none, you have a limit order that will stay open until it can be completely filled.
  9. edbar


    I'm looking into trading pink sheet stocks and imagine an "all or none"/"fill or kill" limit order is probably the way I would like to go.

    I haven't started looking at the brokers yet, but I wanted to get these issues resolved first.

    Thanks a lot! I appreciate it!

  10. wutang


    Let me give you another piece of advice I hope you'll take, seriously. Stay far far away from pink sheet stocks. They are a hotbed of scams. DO NOT consult any forum, newsletter etc for advice on any pinksheet stock. I can 100% guarantee you anyone who gives you advice is either a problem gambler or they are being paid by the company to promote their stock. Sure you might get lucky and make 500% in a day but you are far more likely to lose 40% or more on any given day. If you insist on gambling look hard into the background of the companies filiings and any other ticker symbols they might have used for a pump and dump and reverse split. Assume they are all scams no matter how legit it sounds.
    #10     Nov 5, 2009