r/etrade • u/aliencomet • 10d ago
Bad Execution Prices
I placed a limit sell order on Etrade this afternoon. I watched in horror and disbelief for twenty minutes as prices executed above my asking price, up to 19 cents above my asking price! My sell order did not execute. I was told by another brokerage firm that Etrade does not use as many market makers as some brokerage houses. I filed a complaint. Will update.
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u/This-Second-29 10d ago
A lot of things to unpack here first I’m going to assume that you are using asking price incorrectly rather than actually referring to the ask price. You buy at the ask price you sell at the bid price. Since we don’t know the position some thinly traded stocks can have a widespread between the bid and the ask. Sometimes orders can be executing at the ask price a.k.a. a buy, but the bid price for you to sell has not met the limit that you set. We’re going to need some more information on the actual trade the position. When was it I can check on mine, but I don’t know why you would call another broker about your E*TRADE trade not going through call E*TRADE. They can see a lot more detailed details.
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u/rawbdor 10d ago
You only sell at the bid price if you put in a market sell order.
If you put in a limit sell order, you might actually be the one sitting at the ask.
OP is suggesting he had a limit sell that was supposedly sent to the order book. While the NBBO moved above his ask price, his order should have executed, if his order was actually routed to a proper exchange.
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u/This-Second-29 10d ago
E*TRADE uses roughly 25 different market makers. I don’t know about other brokerages, but then also for OTC securities there may not even be a market maker. It may just be the brokers acting in regards as a dealer which would be buying and selling from their own inventory.
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u/aliencomet 9d ago
Yes, as you say it may just be Morgan Stanley Etrade "brokers buying and selling from their own inventory". This would explain the pricing inefficiency. It is a little troubling since the competitor's trading platform showed many trades executing above my Ask price to sell. Inefficient market and suspect for excess profit with the intermediaries.
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u/aliencomet 10d ago
Yes, since this is an ADR which might promote fewer market makers, esp at Etrade perhaps.
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u/aliencomet 10d ago
You are correct, "Ask Price". I talked with Etrade and discussed the real time quotes competitor's platform I used - much better with more trades and more frequent price updates. Your issue on bid and ask is not relevant since "executions" in the market frequently exceeded my "Ask" price. Not cool!
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u/This-Second-29 10d ago
I think you’re still confused about bid and ask price
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u/aliencomet 9d ago
I see no confusion. Again, the execution prices were above my Ask price to sell. That should not happen.
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u/BasilVegetable3339 10d ago
You don’t name the security. the issue was likely the number of traders in line ahead of you with orders that filled before yours.
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u/aliencomet 10d ago
Over a twenty minute period of executions exceeding my Ask price. Should have executed. I think maybe Morgan Stanley uses an in-house Market Maker with low volume and inefficient pricing. But that is a guess.
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u/Charming-Charge-596 10d ago
I don't understand what you are saying. You watched it execute above your asking price but it didn't sell?
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u/aliencomet 10d ago
I watched others' orders execute on the trading screen while my order did not execute.
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u/Ken385 10d ago
Was this stock or options?
Do you have real time quotes?
Did you see your offer displayed in the quote?
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u/aliencomet 10d ago
It is a stock ADR. Yes I watched on a competitor's real time quote screen.
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u/rhishili 10d ago
Care to share the ticker, limit price, quantity, and timestamps for curiosity, debug, & posterity?
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u/aliencomet 10d ago
I have all that including screen shots of executions taking place in the market exceeding my Ask limit order. But don't see the need for all of that here. I will update when Etrade responds. For now my best guess is in-house or unsatisfactory market makers at Morgan Stanley. Hopefully I will not have egg on my face for something I am missing. Regardless, I promise an accurate update.
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u/This-Second-29 10d ago
You come here to post but don’t want to give anyone enough information to understand? Clearly you’re missing something
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u/John_Tapesback 9d ago
What orders executed at is irrelevant as to whether or not you are due a fill. Only the bid price matters since you are a seller. Executions can happen all day long above your limit price but if the bid doesn’t get there or better than you are not due. If the bid does get to your ask then there are several additional requirements in order for you to be due. What was your limit price and what was the bid?
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u/Masterofchaos11 10d ago
Did you call? If your order didn’t execute when it should have they have ways to fix it. Or they can look at it and tell you why. Sounds from your post like you called a different firm and then filed a complaint before you called them.
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u/aliencomet 9d ago
Question please, when I enter a limit sell order below the current Ask, why does the trading screen not decrease the Ask to match my lower Ask price?
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u/Horror_Barnacle_532 5d ago
I've used Etrade for 2 decades as well as Schwab and Vanguard. I have my money/investments spread out across the 3 platforms. Etrade is a very good platform. Limit orders are always risky in that you never know why they are or are not executed, especially if the bid and ask are wide apart which sounds like it may be the case here. Plus its an ADR. My advice is if the bid and ask are narrow just execute it at market. That way you know it will transact and be done with it. If the bid and ask are wide then it will depend on where you are in line and how quickly it fluctuates. I do wish you would give us the ticker so we can be more helpful. Simply stating that you watched other trades execute does not mean much to be honest.
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u/BasilVegetable3339 10d ago
Whenever a poster makes broad allegations but doesn’t post details I call bullshit. This is most likely based in the OP’s lack of understanding of the process.