Am I mis understanding sell limit orders? I’ve just tried to create one at a price of $400 dollars but it complains that it’s too high above the current price and I can only set one up to 200% above the current price($32) what it the point in that? I don’t understand why there would need to be a limit on this?
Just to add, this isn’t exclusive to FT but other apps also do this.
Would like to understand if there’s any technical or other reasons for this.
As you said, all brokers have a limit like this, some higher and some lower. I’ve seen two explanations for this. One is that it’s sort of for your protection, because the usual reason for someone placing an out-of-the-ballpark limit order is a typing error. The other explanation that I’ve seen is that it costs the broker a small fee to register the order, so they refuse to take unrealistic orders that will never be executed…
I have seen a few different explanations as well and the question was out of curiosity more than anything else to see if someone at FT can provide a view on this.
I have no need for this feature now or ever