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Hello DH,
Wednesday, December 1, 2004, 10:12:53 PM, you wrote:
>> The more I think about it your broker is probably going to tell you
>> you sold whatever the original number of shares was, call it 100, you
>> sold 100 with due bill attached at the new price. The correct stop
>> price is the customer's responsibility. So you are flat. Flat as in
>> 0 shares and the price should be the market price that you sold at.
D> I suspect it's just like Tony said in his first posting and IB will say
D> he should have known about the split and changed or cancelled his stop
D> order before the split.
That would be an odd rule.
If I change it to the new split price before it actually has split my
position is unprotected for practical use. I mean a 52% stop is very wide.
What about a reverse split?
It would mean setting a $200 stop on a $100 (long)stock.
Needless to say it gets hit instantly.
D> Say you're long 100 at $30.
D> Your order is sell 100 at $25 stop.
D> Stock splits, you're now long 200 at $15.
D> Stock trades at $15, your stop gets elected.
D> Sold 100 at $15 leaving you long 100.
That's exactly what happend DH.
Just want to add that my stops where reasonably wide. (2%)
At no time the low came near my stops.
I'm going to office now. The markets open in 6 hours.
Meaning they have 4 hours to mess up my stops before I return from
office :)
If there are no more replies when I get home I e-mail my broker.
Thanks to all who responded!
--
Best regards,
Tony
Why are people so scared of mice, yet we all love Mickey Mouse?
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