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When I write limit orders for securities that have a low trading volume, I normally ping the brokerage API to see what the current ask price is. However, when I was looking at a specific stock I noticed that the ask price was insane! screenshot of quote

So I was wondering, if I submitted a Market Order to buy 1 security and I had the available capital, would it execute at $199,999.99?

  • Was this ping during regular trading hours or during after hours? – Bob Baerker May 1 '18 at 14:16
  • That is a mistake, don't expect buy/sell orders to be filled for that amount. The broker will identify it and fix it. If any order did go through, such a high deviation will trigger alarms on the broker's side. I have seen this multiple times and every time the broker has been aware about the error. – DumbCoder May 1 '18 at 15:28
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When after hours orders first came out some did trade like that until broker-dealers fixed their systems. This is a dummy value designed to prevent an actual trade. The only firm where there would be risk is Berkshire Hathaway, which does trade in the $300,000 range. In fact, if you did place a limit order like that on a stock that trades after hours, your trade would be reversed if it went through, they would close your account and you would be banned from trading for market manipulation.

Most people wouldn't place an order for one share and most could not afford a 100 share order at that price per share. It is designed to prevent an automatic execution.

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