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Non-Tech : Fight The Power! -Your Broker Just Screwed U - Now What? -- Ignore unavailable to you. Want to Upgrade?

To: AnnieO who wrote (109)	12/8/1998 6:56:00 PM
From: Eric P	Read Replies (1) \| Respond to of 323

AnnieO: First of all, the person who was buying at that price may have been other investors/traders, or the specialist (not market maker) of the exchange. There is no way to tell whether you should have been filled at 42, although I suspect you should have. Several points to consider: 1) Floor brokers and market makers all know that the highest concentration of buy/sell orders can be found at the even (i.e. no fraction) number. This is a widely known fact. When placing limit orders, your best bet will always be to place the order before the even number. For example, if a stock is trading at 44 1/2, a buy limit order should be placed at 44 1/16 (not 44). A sell limit order should be placed at 44 15/16 (not 45). On a stop order, the procedure is reversed to prevent filling the order until after all of the even number executions are completed. A sell stop order should be placed at 43 15/16 and a buy stop should be placed at 45 1/16. This will help avoid the frequent problem of getting stopped out when the order just touches down to your stop price of 44, then goes back up. 2) Find out which exchange is being used to execute your order. CPQ is a NYSE stock, however, you may be surprised to out that the bulk of the orders that discount brokers execute in NYSE stocks occur in the regional exchanges (due to lower fees). I don't know for certain whether this causes any disadvantage for you, but I always place my orders for "NYSE Only". There is no extra charge, and you can be more certain that your order is being handled properly. -Eric

To: AnnieO who wrote (109)	12/8/1998 7:03:00 PM
From: Jim S	Respond to of 323

Welcome to the fight, Annie. First, you broker is showing he doesn't know what he's talking about and/or is blowing smoke when he talks about a MM for a Big Board stock. Only Nasdaq stocks use MMs. The answer is that, yes, you should have been filled. You will have to be as much of a bully (I have another word in mind, but I'm being nice) as your broker to get it corrected. Tell him you want him to check the tape and explain how trades could have gone through at a price below your bid, and you not be filled. If you are being properly represented on the exchange, there is no way this should have happened. When he tries to confuse you (and I bet he will!) with all the bid-ask-time-spread BS, just keep coming back to your point: how could trades be executed below your bid if you were properly represented on the market. The answer is that they can't. If necessary, don't be afraid to elevate it to their floor manager. No guarantees, but it usually works for me. Good luck! jim