tag:blogger.com,1999:blog-5433839636644874439.post2554430423320493087..comments2024-03-04T13:37:11.022+00:00Comments on Canadian Financial DIY: Market Integrity and Today's Free-fall DropCanadianInvestorhttp://www.blogger.com/profile/05645767559302303541noreply@blogger.comBlogger5125tag:blogger.com,1999:blog-5433839636644874439.post-90712676347556944362010-05-11T19:19:10.568+00:002010-05-11T19:19:10.568+00:00Yeah, I freaked out too when I saw the cancellatio...Yeah, I freaked out too when I saw the cancellation of those trades. I bet there's more to this than we think. *puts on conspiracy hat* :)Canada.creditcards.comhttp://canada.creditcards.comnoreply@blogger.comtag:blogger.com,1999:blog-5433839636644874439.post-29986326938603246182010-05-07T16:23:37.883+00:002010-05-07T16:23:37.883+00:00I assume that by "automated limit" you m...I assume that by "automated limit" you mean that the software will block the trade if it would put the investor over the buying power limit. I would hope that cash accounts (rather than margin accounts) would be even more restrictive. It would make sense to limit sell orders to the number of shares held and limit buy orders to the amount of cash available. But, I don't know whether the software would actually block trades that exceed these limits.Michael Jameshttps://www.blogger.com/profile/10362529610470788243noreply@blogger.comtag:blogger.com,1999:blog-5433839636644874439.post-59115765328597544862010-05-07T16:08:35.497+00:002010-05-07T16:08:35.497+00:00Michael, There is an automated limit placed on the...Michael, There is an automated limit placed on the possible size of a trade, what my main broker BMO Investorline terms 'Buying Power', which in addition to cash, is based on your margin limits calculated on the value of other existing holdings. Margin is the amount you can borrow from the broker and it gets calculated in real time - if your holdings plummet then your margin limit goes down, so you must either pony up more cash right away, or your holdings will get sold to cover.CanadianInvestorhttps://www.blogger.com/profile/05645767559302303541noreply@blogger.comtag:blogger.com,1999:blog-5433839636644874439.post-59571282044808976472010-05-07T15:26:42.899+00:002010-05-07T15:26:42.899+00:00What limits are placed on trades made through a di...What limits are placed on trades made through a discount broker? If I enter a trade to buy a billion shares of Microsoft, I'd hope that my discount broker would block it.Michael Jameshttps://www.blogger.com/profile/10362529610470788243noreply@blogger.comtag:blogger.com,1999:blog-5433839636644874439.post-78329864797581833152010-05-07T13:01:05.830+00:002010-05-07T13:01:05.830+00:00Those were exactly my thoughts when I read that th...Those were exactly my thoughts when I read that they would cancel those trades. If I make a mistake like that, I have to eat it. But not the big players. Money makes its own rules, apparently.<br /><br />Why I am not surprised?Frog of Financehttps://www.blogger.com/profile/12228309420868331540noreply@blogger.com