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Doesn't the exchange reject such orders which are too far away from the current market price?
by sumedh 6y ago
Doesn't the exchange reject such orders which are too far away from the current market price?
- herpderperator 6y agoIf you choose to _sell_ at $1 you will likely get a warning because it will fill instantly at the current market rate despite being a limit order. However you can choose to buy at $1 and there's no reason for it not to be accepted into the order book. In fact you often see this via Nasdaq TotalView during low liquitiy events such as right as the premarket opens where someone is bidding $1 or $0.01 for shares of a blue chip company. The same applies in reverse.
- cout 6y agoMarket makers, which are required to maintain a quote, have been known to put in a bid at $1, knowing it will never actually execute. Until the price drops below a dollar, which it turns out does occasionally happen. Oops.
- flukus 6y agoI don't know about refuse, but if it did go through it would definitely raise a bunch of red flags from the anti-money laundering checks, IME these are taken very seriously. Accounts involved would probably get locked pretty quickly.
- fighterpilot 6y agoI think that's the broker that does that