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Stop-loss orders to be eliminated on the NYSE in February
Stop orders -- or instructions to immediately trade once a stock hits a certain price, even if the price is far worse than the one on the order -- will no longer be available starting on Feb. 26, NYSE said this week. On Aug. 24, “retail investors who had standing stop-loss orders were especially impacted -- once the stop price was reached, the orders were converted into market orders, which were often executed at prices that were markedly lower than the stop price,” according to BlackRock’s report.
NYSE is also discontinuing a type of order called "good-till-canceled" that remain active until an investor decides to cancel it or the trade has been executed, the exchange said in its notification this week.
@linter On those occasions when the family goes dysfunctional, we can't hold the adults in the room accountable, because that's who delivers the Big Bacon to us. Sooooo, I guess we go to Option B--- get the stick, and go give the redheaded stepchild a good beating?
Let me make sure that I've got this right: traditional trading options that protected the small investor are being removed because they overwhelm the marketplace, but as many automated rapid-trades as desired by the large players are no problem at all?
Let me make sure that I've got this right: traditional trading options that protected the small investor are being removed because they overwhelm the marketplace, but as many automated rapid-trades as desired by the large players are no problem at all?
Comments
Here's Blackrock's "analysis" (without quantifiable support for their conclusions)
http://www.blackrock.com/corporate/en-us/literature/whitepaper/viewpoint-us-equity-market-structure-october-2015.pdf
(long ICE)