Whoops–Someone Paid Almost $28 For Gladstone Land Preferred

As we opened an account today we noted Gladstand Land Preferred (NASDAQ:LANDP) traded at $27.95.

Our guess is someone put in a market order for the 195 shares and paid a heavy price for the error.  Just a reminder not to accidently use a ‘market’ order instead of a ‘limit’ order.


12 thoughts on “Whoops–Someone Paid Almost $28 For Gladstone Land Preferred”

  1. While I agree that the buyer should have prevented this by using a limit order, that is NOT the real problem with this trade. The trade was executed at 9:30:00 Eastern, the exact instant that the markets opened for regular trading. You will note that the NBBO showed that someone had an offer(ask) to sell 100 shares at 26.12. So at a minimum, the buyer should have gotten the first 100 shares at that price, unless he had an “all or nothing” order.

    What really happened here was a breakdown of how the different exchanges are supposed to work. In theory all ~50 different exchanges are supposed to be immediately in synchronization the instant the market opens. What happened was the exchange that had the 26.12 offer to sell did NOT properly connect to the exchange the buyer used. Probably 0.1 second later they would have been properly connected.

    Bottom line is that the buyer would NOT have paid 27.95 if the exchanges worked like they are supposed to. So using a market order would not have been so costly.

    On this thread Gary commented he bought NEWT way below the market and it was not reflected in the daily low price that was reported. This is because any trades of less than 100 shares do NOT show in the high/low prices that are reported.

  2. Whoops! Looks like someone was in a hurry when placing the order. While I like my TD Ameritrade account, it would be very easy to make an error like this if the order is not watched closely.

    1. Hi kaptain-lou. Yes my eTrade defaults to ‘buy’ if I punch ‘trade’ from my portfolio screen. Last month I was selling an issue and forgot to change to sell from the default and ended up doubling my postition. I turned around and sold it all but it did cost me $10-15 because of the error–not a biggy, but certainly showed how easy an error is to make.

      1. Very easy to do. Even on limit orders. I was selling BACPRD, the market price was 25.82. I was so focused on .82 cents that my limit order was $24.82. Whoops. Bingo, sold all at different prices average of 25.70. Not tragic but the price to pay even on a limit order when not careful

          1. I tried to pay $100000 for a $100 preferred once. I didnt have the $10 million in my account to allow trade to go through thankfully. After that I made sure my glasses were on before trying to trade.

  3. I recently had a bid in for newt which I had forgotten, I think it was ~18.40. Newt was currently trading around $20. Suddenly i got a hit and fidelity showed me up ~6%. When I looked on yahoo later it never even showed newt going that low. So sometimes it does pay to leave low end bids out there.

  4. Same here. Placed a sell order at 9:36 am @ $ 27.95. Execution not expected. A blip… that’s all it was.

  5. I saw that too… and thought the same thing. I put in a limit sell order at that price in case there was another one out there! 🙂 No luck.

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