Hi matt, I had a buy-stop for NSTK @ $8.01 on friday, the stock traded through that price, but the order never got entered. What happened?
Let me take a look. We had quite a few of these issues on Friday. I am tempted always to blame a bad quote feed, but let me investigate. I will respond shortly!
MK
I thought it might have been my quote machine, but I checked the time and sales and it did indeed trade at 8.01.
BTO 1,000 NSTK 10.95 9/27/04 9:31 open,
Shouldn’t it show: BTO 1,000 NSTK 8.01 9/24/04 9:30 open ?
The market opened at 10.95, alas.
Regarding your question as to why you wreen’t filled yesterday, you set a stop at 8.01. The high of the day was 8.01. The system will not fill on a stop/limit unless the quote trades through (i.e. goes above 8.01 in this case).
This is a philosophical issue: the idea is that in real life you would not be guaranteed a fill (although you might get it) unless the market moved through your price. We try to present the worst-case scenario to potential system subscribers.
Matthew
A stop order is supposed to become a market order when the price trades at or above the specified price. So when the price traded at 8.01, a market order should have been activated. This is how all my brokerage systems work, this is NASD & SEC regulation. That is why I put a buy stop @ $8.01 which is .01 above the previous days high, rather then put a buy stop @ $8 which according to you would only become active if the price hit a minimum of $8.01. If the system only fills stop orders when it trades above the stop price not at the price then the stop order feature is not properly implemented.
Below is a link to the SEC website which gives the legal definition of a stop order in the first paragraph.
http://www.sec.gov/answers/stopord.htm
quoting “A stop order is an order to buy or sell a stock once the price of the stock reaches a specified price, known as the stop price. When the specified price is reached, your stop order becomes a market order.” - http://www.sec.gov/answers/stopord.htm
