What Control Can Online Brokers Assert?

[billyjoe]

My son has an online account with Schwab. I anticipated a volatile market today and asked him if he had a stop order placed on TNH which closed yesterday at 129.93. He attempted to place a stop order and was told it had to be at 112 or lower. He decided not to go that low and the stock opened at 115.50 and closed at 123.51. Had he placed the stop order it would have triggered, having reached a low of 111.60. It also reached a high of 131.58 today. Something doesn't seem kosher here. Am I just nitpicking?

--------------billyjoe

[IIC]

My son has an online account with Schwab. I anticipated a volatile market today and asked him if he had a stop order placed on TNH which closed yesterday at 129.93. He attempted to place a stop order and was told it had to be at 112 or lower. He decided not to go that low and the stock opened at 115.50 and closed at 123.51. Had he placed the stop order it would have triggered, having reached a low of 111.60. It also reached a high of 131.58 today. Something doesn't seem kosher here. Am I just nitpicking?

--------------billyjoe

Read the fine print...different brokers have different rules

[skiracer]

My son has an online account with Schwab. I anticipated a volatile market today and asked him if he had a stop order placed on TNH which closed yesterday at 129.93. He attempted to place a stop order and was told it had to be at 112 or lower. He decided not to go that low and the stock opened at 115.50 and closed at 123.51. Had he placed the stop order it would have triggered, having reached a low of 111.60. It also reached a high of 131.58 today. Something doesn't seem kosher here. Am I just nitpicking?

--------------billyjoe

That seems way out of line. How can they dictate where you place a stop. If that is the case I would get out of that brokerage asap.