Trade not executed because price reported is after hr

Question

I placed to limit order to sell at 13.50. and the stock closed at 13.60 that day but my trade wasn't executed. Fidelity said that it's because the 13.60 took place at 4:03 which is after hr so that's why the trade wasn't executed. Are they allowed to not execute the trade?

Answer 1

Depends on when you placed the order and the liquidity of the stock and the size of your order.

With a trading platform that is reasonably sophisticated, you can see the price movement. If you used with Fidelity what I used to use--a basic simple order placement box with no much other info, then you really can't follow your trade.

I recommend you get a better platform, either with Fidelity or with another broker such as TD Ameritrade. Personally I think it's a waste of time spending too much energy on complaining. Just figure out a way so that in the future you won't have a similar problem. With other brokers there will not be such issues.

Answer 2

I doubt very much that Fidelity would say something that was wrong. Was that in writing? If not ask for the explanation in writing, although I suspect the 'phone was recorded. Write an official complaint and see what you get back.In the UK a limit would last up to the close.

Answer 3

Generally when you deal with wirehouses like Fidelity your trades will be executed in a timely fashion.  The easiest answer to that question is that limit orders are not handled the same as market orders.  Market orders are handled first and limit orders are handled next and they are handled in order of size and time.

There was an answer that referenced liquidity and that may also be a factor.  If there were people who were buying at your sell price but you were selling more stock then was being bought then the price will generally go down or your trade will not get executed.  If your stock is not traded after hours then you will not get executed either.

Answer 4

The US stock markets close at 4:00 PM EST (13:00 HRS).

Based on the times above you entered the order in the after hrs, which unless you specified the order to be routed to an ECN that trades that security the order will be open until next day.

Not all stocks trade after hours.

Also. Limit orders require that a stock you are selling hit the bid price. There could be and usually are orders in front of you. if the order does not hit the bid limit, the order will not be filled.