Amerigo Resources Ltd T.ARG

Something interesting about trading

[goldens]

I normally only put in orders that expire at the end of the day but recently I had buy order in that was good till the end of the week. It never got filled and then I noticed that the limit price was lowered by $0.03 and my first thought was that my account got hacked. Changed my password and then sent a message asking if they would have changed the bid. As it turns out, if you have a bid in that crosses the ex-dividend date they lower the bid by the amount of the dividend being paid. 

Not sure if other companies do this but thought I would share.

GLTA

[nedstar71]

Just reading this now.  What brokerage was that?  Now way that's normal, the bid you entered shouldn't change ex div or not.  Sounds like something Wealthsimple would do trying to dumb down trading for dummies.

[goldens]

I was pretty shocked as well but it does make sense in that stocks normally go down on Ex-dividend date to cover the loss in capital. I am with RBC.

[nedstar71]

To me it still doesn't make sense. When I place and order I'll take into account whether it's going ev div or not.  They should never adjust a price point you set imo.  What if it's a 6 month good until filled order on a monthly payer?  In 6 months your order price would have been lowered 6 times and all things being equal it's doubtful the stock price would

[goldens]

Hey I think I was just called a Weirdo. I guess you just need to read your trading agreement to see what the rules are for whom ever you use to trade. As I said, I was shocked but apparently it is buried int he paper work somewhere.

[nedstar71]

You'd only be a weirdo if you liked it ;-) I personally would be disturbed if I put in a good until order and then months later realized they lowered my bid every month a dividend was paid out.