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My "Stop" are being hit even if though below the low of the day???

I set a "Stop on Quote" on Etrade at $18.36 for 44 shares of LILA. It was hit at 9:30am today. However, the "Day's Range" was 18.79-19.26.

So, my Stop was executed below the low of the day. What am I doing wrong. (My first post! Wasn't sure where to post it.)

Thanks, Rick

Comments

  • markdmarkd mod
    edited August 8
    I'm just guessing, but possibly your trade, as an odd lot doesn't get recorded by the exchange, or, your broker filled the order out of its own inventory when the bid-ask included your stop, so the exchange was not aware of it.

    I would guess somewhere on your broker's website, or in your agreement, is a description of how different orders are handled.

    I can't vouch for this link, but it came up in search on stops:

    https://bclund.com/2011/09/28/3-ways-the-exchanges-screw-with-your-stop-orders/
  • Thanks for responding. I read the article, truly enlightening.

    I am now wondering if I can change the dynamic, so that I pickup a given stock below the market (exchange) price by throwing out a low ball order in the general area where investors would naturally set stops?

    Interesting.
  • BTW, markd, I really can't express enough my appreciation for your response to my post. This was my first response and it is a shot in the arm to not be floundering alone!
  • Thanks for the kind words. Glad I could help.

    I don't think you can affect the order of transactions as a retail trader. If you put in a market order, you get the ask. If you specify a price, that's a limit order and it goes in the queue behind the other limit orders at that price, if any. If you have big money, you can run stops - you eat all the orders between the current price and where you think the stops are (i.e., you sell short to absorb all the buy orders under the current market). Then when the stops come in - selling - you buy and cover your shorts.

    Maybe there are some others our there who might want to share how they enter orders and/or stops.
  • Thanks again! Rick
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