OTC-BB and Pinksheet Securities are not valid for STOP or STOP LIMIT orders.

Posted by TracieLynn on February 05, 2010 (12:02PM)

After my historic loss of over 80% on HEB so far, I'd like to cover my back, just in case they take a deep dive, and place a SELL STOP order for the 600 ALIF I currently hold.

Here's the message I received:

OTC-BB and Pinksheet Securities are not valid for STOP or STOP LIMIT orders.

I'm sorry, but after the recent problems with having to call in when wanting to trade (which I refuse to do), I'm confused. Why can't TK process my order? Rephrased, what am I to do to place my order, other than watch the streaming quotes (unfortunately also not thanks to TK) for every minute of every day while trading is being done?

Any input, please?

Posted by TK-Stefan on February 05, 2010 (01:53PM)

TracieLynn,

Unfortunately it would not be possible to place a stop or a stop-limit order on a Pink Sheet or OTC here at TradeKing. Since these symbols trade on the over-the-counter bulletin board and Pink Sheet they do not have the same type of regulations and stringent listing requirements that other listed stocks or Nasdaq stocks have. In addition to this they are susceptable to various forms of market manipulation.
 
In order to protect our clients from receiving poor executions or poor triggers we do not allow market orders, stop orders or stop-limit orders to be placed on Pink Sheets and OTC securities.

Clients would be able to place a buy/sell limit orders online for securities that trade on the Pink Sheets and OTC market. If the website requested that you call in then we would need to speak with you over the phone to place the trade.

Also, our streaming quotes are able to provide information on OTC securities but not Pink Sheet securities.


Best regards,

Stefan McVeigh
TradeKing Customer Support

Posted by The Otter Way on February 05, 2010 (10:22PM)

You would think for that extra penny... they could do a little more for us... Could trade king share with us how many pennies you guy make in a week?  Could you all put that toward my SEC penalty?


What does it take to start a trading house.... Let me see what's in my favor...

Good looks... yes...

Good looks ... yes... Oh, I already said that one...

Would you all loan me 1 trillion pennies please?

Posted by David Dusseault on February 06, 2010 (11:42AM)

Otter,

In addition to what Stefan mentions above, TradeKing does not execute orders we only route them to the appropriate Market Center for execution and the Market Centers will not typically hold stop orders on these low priced securities since sometimes the quote data can be limited and there's truly not much in terms of listing requirements for these companies. As a result as Stefan mentions they are often the targets of price manipulation. So we at most times don't even have the option to route these orders with a stop qualifier on them.

Thanks,
Dave Dusseault
VP, Brokerage Operations and Customer Service

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