Weird Trading Rule
Have you guys heard of the “tick size pilot program”? I hadn’t until today when I tried to enter a limit order trade for Richmont Mines @ $7.31. The order was rejected and a message popped up saying that I can only enter trades for RIC in $0.05 increments. So I reentered the trade limit @ $7.30 and it was accepted. Maybe this is how they’re trying to address HFT or something. I was always wondering why RIC didn’t move as often as other stocks. Now I know.
Yes, RIC and some others have been subject to that rule when I trade with Fidelity for some time now.
It’s been that way forever at TDAmeritrade. Anything over a buck and you have to bid in .05 increments. Why I have no idea, but for a few cents I ain’t gonna get my underwear in a knot. 😀