Would I get in trouble for this?

Discussion in 'Strategy Building' started by cashmoney69, Jan 21, 2007.

  1. I dont have much money in my account, but if I placed a limit order for a stock.. say JNJ, for 250,000 shares @ 25.50 ( .75 above the market), then canceled my order, then did it a few more times.. would I get investigated or something for screwing with everyone?..Dont large orders like that get viewed by traders on the floor?
     
  2. doli

    doli

    Won't your broker do a margin check before letting the order go to the exchange?
     
  3. Why dont you just buy a jigsaw puzzle with your $15 and you wont be a bother to anybody cos you'll be to busy with the puzzle.:)
     
  4. silk

    silk

    Actually, even if you had the money to buy the shares and your order was executed, it would not alter the stock price for very long. You would just get a bad fill, and then the stock would go back to what it was doing before.
     
  5. I'll need that $15 for my commission :) , but thanks anyway.
     
  6. Could you explain why that would be the case? Is it because other people's orders would still be entered around the original trading price, and the one huge order just wouldn't have any effect on the orders that already existed?

    Sorry if that sounds confusing ..
     
  7. what a bunch of rubbish

    you can't get a "bad fill" if you put a LIMIT order in.

    if the guy made a AON order vs. a standard limit order, that would make a difference as to whether it GOT filled, but the price on a limit order CANNOT be higher than the limit price (for a bid), so that statement was nonsensical.

    btw, JNJ is a great "portfolio" stock.

    it is one that i have been keen on
     
  8. That's what I was thinking when I read that ... thanks for the clarification though. I was thoroughly confused :confused:
     
  9. Silly boy, you dont have enough monies to even place said order in to begin with. You need focus on making good trades and not being a trickster

    -Harry


     
  10. yes. i am not aware of any broker that would allow you to bid for an amount of shares greater than you can actually buy.
     
    #10     Jan 21, 2007