Mikhail,
I appreciate your quick response to my post #79.
The interpretation of what is meant by the term "Limit Order" is the issue. Evidently there is a disagreement between you and E*Trade which has not been resolved to your satisfaction. The question is, who is in error in this transaction? I have heard enough complaints about E*Trade to cause me not to use them.
I personally use a discount broker and have for years, with great success. I have traded the stock market since 1962, and have had many disagreements with stock brokers. Some disagreements were resolved in my favor, and some were not; all in all, it has been an education.
The basic disagreement that you have with your broker is, "what is meant by a limit order". In my last post on the matter, I attempted to explain the procedures for executing a "limit order". And, believe me I have had several over the years. When ever you specify a "limit order" price, that is the price you are going to get, if the stock trades at that price. Very often the specified "limit order" price is not "triggered" if the market maker trades beyond that price, and the order goes unfilled.
The basic disagreement comes from your understanding as stated, "...,but only if the client can get a specific price OR BETTER". Once that "limit buy" order is placed by your broker with the market maker, the broker is out of the equation. And believe me, the market maker is not your advocate, he is not even obliged to get you the best price. Your order will only be executed the in the sequence he has you listed in his book at the limit price specified, and provided he can get the number of shares you ordered.
As to books on the subject, please refer to Technical Analysis of the Futures Markets by John Murphy - Prentice-Hall Co., under the heading Types Of Trading Orders. Limit Orders - "The 'limit order' to buy specifies a price that the trader is willing to pay or accept. A buy order is placed below the current market price and states the highest price the trader is willing to pay for a purchase". Note that the term "Or Better" is not used or implied. I have many more supporting references on the subject, but this illustration should suffice.
Again, if you want a guaranteed by at a reasonable price, make your purchase a "buy at the market" order and avoid the confusion.
Regards,
Harry |
