Price crossed but order not executed. Fraud?

Discussion in 'Order Execution' started by trd, Nov 14, 2009.

  1. trd


    I'm placing a long buy order many cents below the ask and last price.
    After several seconds the ask and last price both drop below my order price
    but my order does not get executed.
    I cancel my order and repeat it.
    Again the same happens.
    It always happens the same.
    How is this possible?
    Isn't that a fraud?
    Broker is IB, stock is IWM.
  2. Hi, trd

    Whether your limit order gets filled or not depends on the depth of the market at your limit price.

    Almost certainly, a) you weren't the only trader with the same limit price and, almost certainly, b) the total number of shares corresponding to limit buy orders at the same price was greater than the total amount of shares offered at that price during the moments you saw the market hit your limit price.

    Happens all the time ...

    What determines who gets filled first? It's the "order preference rules" of the market. I don't know which liquidity pools IB exposes your order to - NYSE ARCA, ECNs, market makers, exchanges and other hidden pools of liquidity - but each will have order precedence rules associated with it.

    "Strict Time Preference" is often one of the rules, and this means you will be further down the line than anyone who submitted a buy limit order at the same price, but BEFORE you did.
  3. hehe canceling the order and repeating is just gonna make things worse. It is not like ringing some buzzer to remind someone that you want to buy stock.

    That is like getting out the queue and coming back and having to stand back in the line.


    Just because you wanted to pay XYZ dollars does not mean 100 other traders did not think of that ahead of you and are now in front of the queue.

    Early bird gets the worm.

    Think of it like those specials on sunday for a clock radio at 1.99 bucks. Get your ass early before the crowd comes cause supplies are limited.
  4. trd


    Hmm. sorry I don't get it :-(
    As I said: the LastPrice falls through BELOW my limit price w/o ever filling my order. I wonder how this can be possible?
    Any other plausible explanations?
  5. rwk


    You didn't say how you routed the order or what kind of quote stream you are viewing. I will assume you are using SMART routing and Level 1 (or equivalent). The price you see may be on a secondary market (i.e. an ECN), or it may be a print of a trade made off-exchange or earlier in the session. It is also possible that there was a technical problem at the exchange, at an ECN, or at the broker. IB is one of the most automated brokers around, so it is highly unlikely somebody is tinkering with your order, or that there major flaw in their order processing.
  6. Hi, trd

    Sorry if I’m continuing to misunderstand what you’re saying, but I think the same type of explanation applies…

    For example…

    While you (and probably many other traders) had a limit buy order at X, yet another trader placed a sell order at a lower price, Y, for a small number of shares (why? Because they wanted to be sure they sold, or it was a mistake on their part).

    If you ‘d been the first trader in the queue of those with buy limits at X, you would actually have been lucky enough to have your limit buy order at X filled at Y!

    However, this situation only existed until that trader’s order to sell a small number of shares had been filled … after that, it was back to the long queue waiting to get filled at your price!
  7. You probably were trying to trade IWM while looking at another symbol's quote/chart.

    IB is pretty good at execution and I am unwilling to think it's due to IB at this time. But if your broker is Scottrade, I believe you, because Scottrade used to hold my market orders for 2-3 minutes without execution.
  8. Surdo


    At least he does not try to sue people for not being compensated for sharing insider information JACKASS.
  9. are u stupid or what?

    sharing inside information should and must be compensated, that's the norm of the industry. Fund managers pay good money for good information.
  10. Surdo


    "Good information" is one thing, advertising you sold illegal information is downright retarded amigo.
    #10     Nov 14, 2009