If you want to get the app changed, the appropriate place in the forum is to add your voice and vote to this thread: Limit Sell 200%+
Just voted, guess who i saw on that GME thread yet again, being negativeā¦hi Gary!
If it goes above the limit, freetrade may have to scramble for a new prime broker. Thatās me two pense.
Nobody should be scrambling for anything. Freetradeās contingency planning will have this covered.
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This makes me rub my nipples.
Nice.
Great, hopefully everyone will shut up about it now
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Iāll give you a cuddle.
Its OK, just let it happen.
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I know weāve discussed this at length, but I think thereās been some misunderstanding as to what is actually possible. I just tried the triggered stop loss, limit order (whole shares only) and triggered limit (fractional shares) for selling. All result in an error message stating
The maximum value for a single trade is Ā£25,000. To continue, please break your order down into multiple trades of values below Ā£25,000.
However, the prompt states What price per share would you like to sell at?
Because you must specify the price per share first, it is impossible to sell shares at fractional amounts in order to meet higher limits if the share price rises above 25k.
This is important to note because many of us were under the impression you could simply put up a limit triggered sell for 0.2 of a share if the share price rose to say, 100k. This is not correct. You cannot sell at fractional amounts unless you use a market order, which is unlikely to execute at favourable terms during extreme volatility, if at all. If you use a limit order, you cannot currently sell shares for more than 25k a piece. Period.
Selling XX or XXX quantities of shares will have to be done two at a time, and these transactions can get stuck and take 10-15 minutes or more. I honestly, genuinely in good faith hope that Freetrade have a switch somewhere called āincrease maximum share priceā otherwise thereās going to be a lot of extremely unhappy customers if the āedge caseā does indeed happen.
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Limit orders are always for whole numbers of shares.
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To be honest, this is why I started the topic thread. In the event of any highly volatile trading environment, the cap on trade value makes it very difficult for customers who want to sell.
For example, if your GME holding is in the hundreds or thousands (as many peopleās is) then it could be challenging to optimise a sale. A modest holder with 100 shares trying to offload all of their shares at GMEās current 52 week high of $458 would have to break their trade into two transactions. So it isnāt fanciful to imagine that this is a genuine problem nor is it unreasonable to expect that Freetrade should have a solution for it.
To be honest, if Freetrade had included the limit in their up-front marketing, I probably would have chosen another provider.
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If thereās extreme volatility and a market order is unlikely to work what makes you think a limit order will go through? they arenāt magic
I guess Limit order would be helpful if it went up while your arenāt monitoring it though
A limit order is more magic than a market order. In the event of a high volatility surge, the spread is going to be extremely wide, especially if liquidity is low. A market order will execute anywhere across this spread. This could be the difference of thousands of dollars per share (or tens of thousands, depending on market liquidity/spike anomalies).
Degiro wonāt even let their customers use market orders on GME and AMC due to the inherit capital risk, they only allow limits and stops.
Thatās true, but if that happens I think itās quite likely the order just doesnāt execute or get rejected
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Yes, itās a concern if the price becomes minute-to-minute volatile. I think that particular issue is largely out of our hands though.
It still baffles me that you guys all think someone will be prepared to pay that much for the stock.
While I still donāt think itās going to happen, the point of a short squeeze is they have no choice.
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Ralf, imagine youāre in charge. Itās your job to close the entire GME short position. Youāve liquidated the people who sold the shares short and punted all their assets on the open market. Youāve done the same for the other players involved and youāve got the big pot of āinsurance cashā from the DTC. You started the ball rolling by offering a couple of hundred bucks a share but millions of well-educated and determined shareholders laughed you out of town. Whatās your next move?
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If Iām assuming they donāt have multiple trillions to cover the case that GME stock āwent to the moonā, Iād realise that a margin call is going to result in the HF going busy and then Iād get nothing.
So, instead, Iād agree to keep renewing their shorts at ever increasing interest, maybe asking for as many of the shares back each week as they can muster. As there is still liquidity in these stocks, they can get hold of them, just not as quickly as Iād like, but that doesnāt matter too much because not many people want to sell anyway so I wonāt ever have to actually give up those shares. And if they did want them to sell, Iād have 2 days to clear them and sell them directly to the shorters anyway.
And gradually, the short position will mostly close and then a load of people will end up with shares. And then nobody will want them any more, they will plummet in value, and finally the shorters will make back some of the money the paid in interest over that time.
Nobody will lose out much except the mooners.