What's the worst order-entry error you've ever made? I'll start: 5 years ago I was using E*Trash to place an after-hours order to buy 1000 @ 7.51...I accidently typed $17.51 and entered the order.... It filled @ $17.51 and I was immediately down $10,000. At the time I didn't know that trades could be broken (I was a newbie), so I had a grueling 30 minute wait on the phone with E*Trash before they got on the line and explained that they would break the trade.....
I once bought 100,000 CPQ instead of CD! This is when I worked on a block desk. I actually made money on the error after a little bit of embarrassment and pain.
I have the execution platform running on a laptop for system resource issues. It has a mousepad that if you tap it, it is the equivalent of depressing your left mouse key. Unfortunately, the cursor was right over the BUY button on J*Trader. Lot size set to 5. It bought, market was tanking. I immediately exited the position for a small loss. Not 5minutes later I did the same thing on the SELL side. Would have laughed it off, if I could have stopped crying. this just happened to me 2months ago. -momo
A couple months ago I had closed a morning ES position and walked away from the computer expecting to come back later in the day. Well, I guess I didn't get my protective buy-stop canceled properly in the IB TWS and came back later to realize the stop had been hit and I had been long the ES for the last couple hours. Turned out the market went a couple thousand $ against me but had come back to break even by the time I came back and looked at the computer screen again and realized what had happened. I closed the trade BE. It really scared me though so I always double check that all orders are canceled when I am flat before I walk away from the computer.
I mistakenly switch buy and sell orders all the time using IB. Tried Ninja Trader and did it there also, so I guess its not the platform. Worst ever? Sold 10 full sized yen contracts in late '97, and then left for the wekend thinking I was long. That mistake blew me out for the second time (out of a total of three). This was during the Asian currency crisis for those that weren't trading then. Massive moves. Jay
Computer Training Session Proves Costly For European Securities Firm A securities trader cost his company an estimated 10 million British pounds when he accidentally hit the wrong key on his computer terminal during a training session. The trader typed in an offer to sell 130,000 futures contracts in German bonds. The trainee accidentally switched his computer from "training" mode" to "live." The offer was quickly snapped up by international traders throughout Europe. The trainee's employer is contractually obligated to carry out the transaction, and was forced to buy 130,000 futures contracts in order to complete the deal. The company had recently moved away from the "open outcry" system of trading conducted with hand signals and shouting at the London International Financial Futures and Options Exchange, to a new German-based computer trading system called Eurex. The trade was ten times larger than the average German bond transaction. One banker told the London Evening Standard, "his employers must have extremely lax controls. A trade that size should have sent alarm bells ringing." this happened five years ago
I briefly worked at a shitty Chicago prop shop with a shitty order entry platform from a shitty vendor. Was short 10,000 PDLI for several days for a nice profit. At the time I went to cover, the system stalled/crashed and I banged the enter key several times (I later learned that I banged it exactly 6 times). When the system didn't come back up, I called the back office and asked if I was still short. After they told me that I was no longer short, I left for the day thinking that I was totally flat. Little did I know, I was then LONG 50,000 PDLI! (I guess I should have been more specific in my questioning). The bullshit risk manager then exited my erroneous position for me AT THE MARKET!!!!! Now we all know what happens to a 50,000 share order at the market on a NASDAQ stock, don't we? Everyone backed away from the order until I got filled at the worst possible price and cost me a shitload of money. I no longer work for that shop, will never deal with the vendor again, and if I ever see the risk manager I will shove my 12 EEE boot right up his ass! That is all. p.s. While I won't divulge which prop shop it was, I will tell you that it is not one of the ones that is regularly mentioned on ET.
3 years ago, working for a broker, I entered an order to sell 15 million shares of a pennystock @ â¬0,08 in the wrong symbol. The stock where I entered the order was trading around â¬0,20. With the indications of the stock going down (went to 0,12-0,16 from 0,19-0,21) and my colleague wondering what the heck of a sell order there must be in the market, he checked all of our orders and found out that it was one of my orders that caused the indication to go down. My order was in for about 10 minutes - 1 min later and the specialist would have filled me and there would have been absolutely no chance to cancel that trade. After the order was canceled and we told our head of trading about this incident, his face got plain white. I got fined by my CEO´s to pay for a company trip and a car safety training that cost me about 3 grands. Peanuts at that time. If the order would have been filled, my company would have gone out of business.
Here's a good one - happened to me a week ago. I am looking through stocks and I see one OPEN (it IPO'd last week) is crossed 5 cents (inca/Nite) Inca is on the bid, NITE on the offer. Can't short an IPO. inca showing 300 shares, NITE showing 2k. Im thinking, well - 5 cents - even on 300 shares riskless not bad. I hit them both, - INCA was refreshing and it stayed. So i hit it for 2k more, and hit Nite - he absorbed it. I'm thinking. "cool" i just made 100.00 bucks!!! Then I look at my trade blotter: I lost money!!!!!!!!!!!! The market wasn't crossed - there was a regular 5 cent spread! IDIOT!