I've just submitted a trailing stop order. In the order preview a warning icon popped out: "...your order can be executed due to a system outage or accidental miscalculated ticks..." How often does that happen? Thx in advance.

  • Geez, that sounds like a blanket CYA for the broker... Jun 14 '19 at 14:55
  • Of course it is :) However I've seen accidental ticks on charts, but that was many MANY years ago... Just curious if it really happens now.
    – GemStone
    Jun 14 '19 at 15:13
  • With equities, I've seen fat finger trades during after hours where the spreads are huge but that's a one off event. What are accidental ticks? As for how often a stop gets triggered because of system outage or accidental miscalculated ticks, I doubt that it's a reported event unless someone takes it higher up the food chain so frequency of occurrence is probably unknown. Jun 14 '19 at 15:32
  • Thank you so much, Bob. I was hoping to see if something like that actually happened to anybody and how often, or it's a thing that never happens...
    – GemStone
    Jun 14 '19 at 18:39
  • Fat finger trades are also not bad ticks - they may be bad trades, but the trade does happen, so it 's inclusion in the price feed is valid.
    – TomTom
    Dec 29 '20 at 8:21

I've never experienced it with any of the brokers I've used. The "miscalculated ticks" are rare - certainly not frequent enough to keep you from using trailing stops.

Make sure to use a limit on the trailing stop. In that case, even if you did get stopped out accidentally, you could always rebuy at a similar price

  • Miscalculated ticks are extremely rare these days. They come more from times when there was manual trading (as in: a trading pit) and price feeds where MANUALLY entered (as the data recorder - a person - heard it and typed it on keyboard). Nowadays all is electronic and simply typing errors reporting a bad price do not happen anymore.
    – TomTom
    Aug 7 '19 at 9:22
  • Miscalculated ticks where not so rare in the old times when the ticker was manually entered and a provider's filters may not catch a small out of price variance. THAT SAID: Back then triggers also where executed manually. Today the feed is generated by the ticker plant and an error there sort of is illogical to start with.
    – TomTom
    Dec 29 '20 at 8:20

It almost never happens because if it did too often, they would lose customers. The only thing that you need to worry about is the first case of system outage where they go down and can't operate normally. It is to their benefit to execute your order to the best of their ability (Most of these companies will also have things in their terms which state that they keep the customers interests at the forefront so you could take them to court if they screwed you over... then again that is expensive as hell)

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