posted
I’m intrigued by this “Fat Fingers” phenomenon.
They way I understand it, in a nut-shell, - a buyer places an order - leaves out a zero, and ends up placing a buy order for, say, .007 rather than .0007 and those pesky MM’s put it through anyway… right?
Do I understand this correctly? Doesn’t their need to be a seller at this price to execute the transaction? What’s keeping me, then, from placing sell orders at portions of my stock at .007 or .07 or even .7, for that matter, to snare these fat finger mistakes and reap the profits? I know this is a total rookie question … go ahead and have your laughs – I gotta learn somehow.
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quote:Originally posted by metal1: these transactions get canceled or adjusted to the correct price. this is what i remember as the 'obvious error rule'
Ive been the victim of a fat finger today, on CKYS, lost about $1200 or something, do you think I have a chance to dispute this trade with my broker Ameritrade? I should mention that it's a pinksheet stock...
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posted
Sometimes these actually go through and cause people lots of trouble
Google for fat finger; there's been a couple of high-profile cases -- most recent one involving a japanese brokerage firm on the Nikkei market, if I remember right..
-------------------- the market is not your mother
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I just hope I have a case here... I chose my broker TD Ameritrade because I trusted the broker would handle things in an orderly way, and although I forgot a 0 this order should've never gone through 10 times higher. I've bought many stocks with the limit price a few cents higher and they always filled at the ask, in my case however they took advantage of my mistake and ripped me off, instead of letting me buy at the ask, and I think that's criminal. I would like to think my broker will agree with me, and I just hope they can at the very least adjust my trade, or cancel it alltogether, especially when other brokers don't allow fat fingers
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posted
When broker-dealers (MMs) have "an obvious error," as Metal mentions, they have 30 minutes to report it, as I recall. Yours should *not* have gone through, as "too far from trading range."
Stinky, there's stories from "the old days" before decimalization of traders doing tricky things with the time stamp in order to scalp a spread...
-------------------- Nashoba Holba Chepulechi Adventures in microcapitalism...
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posted
I'm afraid 30 minutes have already passed heh, nothing I can do about it now... regardless, I'm trying anyway, this is bullsh** obviously what happened here
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posted
agreed, should not have executed in the first place...seems like I've heard that if you call in right away--let's say, you tried to cancel an order but it wouldn't take--that they'll work with you, but I don't know. Good luck...
-------------------- Nashoba Holba Chepulechi Adventures in microcapitalism...
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quote:Originally posted by T e x: agreed, should not have executed in the first place...seems like I've heard that if you call in right away--let's say, you tried to cancel an order but it wouldn't take--that they'll work with you, but I don't know. Good luck...
ok I called them and they will send all information to the trade discrepancy department of ameritrade, client services told me it's an out-of-range trade, so they will research it and see what can be done, I'll know more on monday
posted
You've got to be careful. I made a similar mistake. Now I post everything I want to buy or sell on a spreadsheet. I check all my figures then I copy and paste my info to my brokers website. Beats losing your money............
-------------------- "What we have here is a failure to communicate".
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posted
I have never made an error like that - But- I also take precautions. TDAMERITRADE has a nice layout for when you go to place the order - It shows you how much it will be and if you figured it out before you go to send it through - YOU YOURSELF SHOULD CATCH IT.
I ALWAYS ALSO MAKE COPY OF EVERY MOVE I MAKE, DOUBLE CHECKING and when the sell goes through - I make more copy of the trade status. I make copy of every-thing!! I have folios of all just in case I need to ever prove anything up.
Before U make a buy or sell - I check my figures and again when I place the order. You have several chances to double check.
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posted
On 'Fat Fingers', If it truly is a fat finger - It is usaually caught pretty quick and is corrected.
If the figure stays for days and days and never corrected then it is a 'SURE THING'.
I have caught them taking my monies foe their own profit and haveing a hell of a time getting to get a response. I've sent certified letters on letters and the amount is close to $50,000.00.
I am not through with this - I t is a horrible situation and is definitely criminal and I will keep going 'til I get some kind of satisfaction.
'FAT FINGER' can be 'USED' as an 'EXCUSE' but when it remains uncorrected for months on end - they cannot use it anymore and then they come up with other excuses but in the grand finale - it is not going to work.
posted
On 'Fat Fingers', If it truly is a fat finger - It is usaually caught pretty quick and is corrected.
If the figure stays for days and days and never corrected then it is a 'SURE THING'.
I have caught them taking my monies foe their own profit and haveing a hell of a time getting to get a response. I've sent certified letters on letters and the amount is close to $50,000.00.
I am not through with this - I t is a horrible situation and is definitely criminal and I will keep going 'til I get some kind of satisfaction.
'FAT FINGER' can be 'USED' as an 'EXCUSE' but when it remains uncorrected for months on end - they cannot use it anymore and then they come up with other excuses but in the grand finale - it is not going to work.
posted
The first "fat finger" I came across in my trading was on IDP before the reverse split. It was trading at .58 or .59 and somebody dumped a million shares at .20
In the space of a second, my portfolio lost half its value. I had to dump all my other stocks to put in to IDP to offset my losses. It zipped up quick to the lower .40's, but incrementally, not a sudden return. It never made it back to .58, but I added at .32 and came out with just a small loss.
This doesn't fit the usual meaning of "fat finger" because the person didn't add a zero to the sale, but it was a $400,000 mistake. What else could it be?
-------------------- Me Trade Pretty One Day.
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