How come etrade didnt sell all my shares?
A web user asks, I set an order for etrade to sell shares at a certain price. It hit that price for half an hour before it dropped and only sold a fraction of these shares. Why is that? Would I have been better off cancelling the order and selling them manually?
It was an OTC stock. What does this mean?
Can you help them out? Post your advice!
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Posted in Trading
There obviously weren’t enough buyers for the stock at your price. Manual would not have helped if this was the case.
Let me guess, was this an OTC stock that you were attempting to sell?
OTC stocks aren’t regulated. This means that the market makers aren’t obligated to sell the moment the receive an ask. They can sell/buy in bulk, put certain orders in front of others, etc.
no one wanted them. OTC-Over The Counter (Not listed on a recognised stock exchange)–Basically rubbish, in the main.
If there are not enough buyers for the shares that you want to sell, then only a part of the trade will happen until more buyers are found.
For the future, you need to be aware of a stocks average volume that is traded each day so that you don’t buy into a similar situation again.
A good rule is to find stocks that trade at least 100,000 shares on average.