I was saved from myself this morning. About 30 seconds before the market opened I entered a limit order to buy 200 shares of MKSI at the offer 13.40 (I thought). Shortly after I was filled, I realized that I had just paid 15.399! I entered the order by clicking on the offer (TWS) so either the offer changed or I didn't notice the two dollar difference. I called IB and got a rep in less than a minute. I explained what had happened, and he said he would call Island and get back with me. About an hour later, he called me back and told me that the trade was being broken. I was glad to not lose the $400. I have three reasons for posting this. First, a reminder to watch the dollars - especially before/after the close. Second, I wanted to give IB credit for doing a good job. Third, I really didn't know if the trade would be broken because it was before the open. Was someone kind enough to let me off the hook? Or, are clearly erroneous trades broken even before the market is open?
Here's my latest stupid move... I was playing with Jasper the other morning and thought I wasn't connected to TWS. I hit the 'p' button a few times. Thank goodness I could see TWS in the background and saw these trades showing up. I quickly cancelled all, but lost $150 in a few seconds. Bet the MM's loved me. g
I had a couple of such (really costly) mistakes before but never bothered to complain thinking it was my own fault (didn't notice the offer changed). Guess I will next time, now that I know Thanks.
I believe it has to be 20% off the prevailing market price to be considered erroneous. Which would be around 16.08. So you may have gotten off lucky. The trader on the other side probably could have refused to cooperate, and there probably would be a long drawn out process. My bet is that most people who post high asks/ low bids pre and post market are trying to catch other traders making mistakes like you did. Why else would they bother?
i am just surprised on an OTC stock you got it busted, its easier to do on listed anyway...if the trade is deemed "outside of market", and yes those stray bid offers arent there by mistake.. here is a good one though for bone-headed moves...the other morning when the market was selling off and quicly, i had a a bid in under the market i lost track of, as the sell off began i hit the bid, which, unwittingly, was my bid the MM was showing...DOH so i sold stock to myself, LMFAO...
I bought 400 interest-rate futures contracts playing around with a new software front-end. Hilarious. Took everything bid, and managed to scratch all but about 35. Was worth it just to see everybody panic.