Once, perusing Toronto Stock Exchange rules, I think I remember seeing some rule that a member had an obligation not to execute obviously-way-out-of-line bids/asks (such as a bid for one percent of the stock price, I suppose). But I don't really remember what it said, just that there might be a limit on execution of stink bids/asks. Some people do use market orders. Suppose you put out a stink ASK for C$100.00/share for a thinly-traded penny stock, and it happens that a market buy order misses or exceeds any reasonable bids. I wonder whether the other party would really have to pay.
That's why market orders are so scary for thinly traded stocks and warrants. For liquid stocks, Jesse Livermore advised people to use market orders, not limit or stop orders. He said the few pennies difference may be the most expensive pennies you ever see, if you miss a big move trying to eke out a few. But for illiquid stocks (say, Avnel Gold AVK.TO...) use limit orders only.
Thanks for explaining the downward spike in Oromin in May. Where do you learn about these things?
