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Chartmaster

03/24/24 12:29 PM

#59585 RE: Xman1959 #59554

Stop market orders can crash an OTC ticker, cuz once the trigger price hits the order becomes a market order and suddenly there is millions of shares the MM has to dump into a thin bid, and if there is not enough shares bid to fill the order price will crash down until the MM has filled the order...that's why you see sometimes fluke price opens like the 43 open we saw here recently, or sometimes you see .0001 trade right at the open only to bounce right back

So it's best to use Stop Limit orders if you must use stops, example: Place sell stop limit order at 61 trigger, 55 limit, so when it trades 61 the order turns into a limit sell order at 55 and you will not see any fills under 55,,,while a large Stop Market order at 61 could tank prices much lower than 55