VIPR Industries Inc (fka VIPR)

[Sitti]

The way I understand is SEC has rules that only allow order for stock under $1 to be priced up to 4 decimal places. But this rule doesn't forbid broker from executing your order at 5 decimal places.

Limit order does not actually gurantee that your order will be traded at your specified price, but gurantees that you get the price you specified or better. For example, you have buy order at 0.0002. Your broker could execute at anything between bid and ask, like 0.00018, which shows on your screen your buy order is filled at 0.0001. Broker could match buy order from one investor and sell order from another investor at a price with four or five decimal places.

SEC has special rules for institutional investors, which allows them to trade at 5 decimal places. I don't think we are allowed to do so with any broker.

I think this gives flexibility to our brokers and makes them able to execute orders as quickly as possible. If we can specify our orders at 5 decimals places, it may take forever to get them filled.