Just wondering what some of you would do in the following scenario I've found myself in. I'll use a more extreme example though to highlight what I mean.
Say the following occurs:
- You place a one-day buy order for 10,000 shares at 50 cents each, for a stock you don't hold yet (total order $5,000). Your quantity adds to an existing buy order at that price.
- 50 cents is the highest bid. The lowest offer is 53 cents, which you consider too high to take.
- Another trade goes through at 50 cents, taking only 10 shares from your quantity. Unfilled amount 9,990 shares.
- Nothing changes for the rest of the day (it's a low volume stock).
The problem is that as the market close approaches, your order is about to expire with only $5 filled. You still consider the 53 cent offer as too high to take, but if you let the order expire, you'll end up with just $5 worth of shares costing you $20 in brokerage.
I rang the online-broker to ask what would happen, given that the $5 order is less than the ASX minimum of $500. They said that didn't matter, and it would just go through with the usual brokerage.
In my case it's actually a $250 order, but potentially it could be as low as a single share. At the moment I've just amended the order to make it a two week order, and I'll see what happens today.
So what would you do?