Etrade Order Rejected

[Bintang]

Can anyone help me to understand why an order I placed today via Etrade was rejected?

For the shares I wanted to buy the lowest offer price was 1.485 and I placed an order for 1000 shares.
When I placed the order I received a message that the order would be reviewed manually before being placed into the market. After that the order was rejected with the message:

Order rejected: If your order trades, this would push the price of the stock too far from the market. Please amend the price of your order

At the time the highest offer price from other buyers was 1.39

This also happened to me a few weeks back but at the time I decided to ignore it. Second time round I am getting annoyed. Presumably the person trying to sell at 1.485 would also be annoyed if they knew that their oportunity to sell at their asking price had been thwarted.

 

[nioka]

Can anyone help me to understand why an order I placed today via Etrade was rejected?

For the shares I wanted to buy the lowest offer price was 1.485 and I placed an order for 1000 shares.
When I placed the order I received a message that the order would be reviewed manually before being placed into the market. After that the order was rejected with the message:

Order rejected: If your order trades, this would push the price of the stock too far from the market. Please amend the price of your order

At the time the highest offer price from other buyers was 1.39

This also happened to me a few weeks back but at the time I decided to ignore it. Second time round I am getting annoyed. Presumably the person trying to sell at 1.485 would also be annoyed if they knew that their oportunity to sell at their asking price had been thwarted.

This can happen if the order is placed before the opening of trading. If this is the case you should check the indicative price before placing an order.

 

[Bintang]

This can happen if the order is placed before the opening of trading. If this is the case you should check the indicative price before placing an order.

OK except I placed my order in the afternoon just after 3:30pm. There had not been a trade since before midday.

 

[cuttlefish]

Seems to be a lot of inconsistency in the way this stuff is implemented. ANZ was able hold over 5% of stocks without declaring it to the market and then dump small stocks relentlessly after Opes prime but no sign of the ASX or ASIC complaining.

But if a retail client wants to buy $5k worth of stock at 11% above yesterdays price when there's a wide spread they reject the order.

My understanding was that the purpose of a market was to allow trading - even after significant announcements they pull this sort of garbage and prevent you crossing a wide spread (on the buy or the sell). If there is a buyer at a price and a seller prepared to meet it and no other buyers then isn't the purpose of the market to match buyers to sellers and vice versa?

They also do not take into account the stocks historical volatility and its also obvious there are plenty that are able to trade without having to adhere to this 'rule'.

The way you're meant to get around it is to place your bid/offer less than 5% away from the previous price then increment (or decrement) it by a couple of points every few minutes. Of course this lets every other person out there thats interested know they have competition and so invariably if its a worthwhile exercise someeone that is not subject to these restrictions will hit the offer/bid before you (and I'm sure sell it back to you at the now higher price if you're silly enough for fall for their game).

You've got to love the inconsistencies of the regulators.

Mind you if you do the increment thing I described above you'll be surprised how often you actually do get filled at a better price (selling or buying) - transfer of wealth from the patient to the impatient and all that.

 

[CAB SAV]

Last week a mate wanted to sell (at any price) some CRJ shares through comsec. The sell was .08 & there was a buyer @ .05. My mate put an order to sell @ .051 and it was rejected three times buy comsec. When he phoned them they said they would not sell because the diff between buy & sell was too great & they were within their rights to make sure trades were "conducted in an orderly fashion". He rang 3 more times & they refused to take his calls!

 

[Bintang]

Thanks for the insights. Glad to know I'm not the only one experiencing this problem but I still feel cheated.

 

[Speewha]

Can anyone help me to understand why an order I placed today via Etrade was rejected?

For the shares I wanted to buy the lowest offer price was 1.485 and I placed an order for 1000 shares.
When I placed the order I received a message that the order would be reviewed manually before being placed into the market. After that the order was rejected with the message:

Hello,

This has happened to me with Etrade. The reason they gave was that the price on offer was too far from the next price on offer. From Memory the SP on offer was .097, the next price was .090. The last sale price was .094.

I was trying to buy a very small parcel at the offer price. I received a phone call from Etrade accused me of trying to manipulate the market , threatened to close my account they claimed my trade had come up on the ASX radar and was causing concern. I found this hard to believe we are talking an amount of less than $1,000.00. After long discussion it emerged that it had come to notice because of the small amount.

After long argument they accepted I was not engaging in market manipulation. They suggested if I want to buy at an offer price and there is a wide gap to the next price to fill in the gap with offers at slight increases in price up to the offer price.

This is an ongoing matter as the person who spoke to me, said he will have to mark my file that Etrade have spoke to and passed on the ASX warning, despite acknowledging I was not manipulating the market.

I have found this all very hard to believe, have not yet been able to make contact with somebody at ASX who is responsible, Etrade have not been able to direct me to where the complaint came from. Perhaps the ASX are trying to show they are responsible market operators and regulators by pinging small traders. Or maybe a large parcel of the shares I wanted to buy had been lent for somebody to short, and I was going to push the price up. A bit cynical I know.

If anybody on ASF has a clue to who I should call at ASX it would be appreciated.

Regards.

 

[cuttlefish]

After long discussion it emerged that it had come to notice because of the small amount.

Quite ironic given that the ASX allows DMA bots to trade parcels of <$500 all day every day even on micro cap juniors.

 

[Kauri]

I guess it pays to use liquidity.. or is that liquid.. :alcohol:
Slainte
............Kauri

 

[It's Snake Pliskin]

OK except I placed my order in the afternoon just after 3:30pm. There had not been a trade since before midday.

It doesn't sound very liquid. 1 trade in 3 hours.