vineviz wrote: ↑Sun Mar 24, 2019 7:27 am
And if you're in the industry then you know that assets are actually bought or sold until the trade settles
, making threat of an adverse market order both less severe and less frequent for the retail investor.
I happen to be a fan of marketable limit orders for retail investors, especially when purchasing securities, but I think it's entirely possible to express such a preference without spreading FUD based on illusory bogeymen.
Ok, I see the problem: the multiple overloaded uses of the word "trade." This gets a bit philosophical (did a trade that was broken ever really occur?)
My position is yes: the trades were printed to the tape, were confirmed to participants, and later were broken (i.e. did not settle). That's why it's called a "trade break." If the trades didn't occur, what exactly are they "breaking" with a trade break? Your position is no, because money never traded hands.
So let's get rid of the problematic word. Since "trade" is ambiguous, let's switch to "agreed to automatic settlement absent human intervention." My point (a) becomes:
"the agreement to automatically settle absent human intervention did happen, which illustrates the inherent recklessness of a market order (i.e. acting reckless and counting on a regulator to cancel your agreement)"
Which is true and quite important! (my point (b) is unaffected & also still important)
Trading is fast & automated and trade breaking is slow & manual. We currently have a situation akin to the 737-MAX, in which the automated parts can do something reckless, and typically a human will manually correct it after-the-fact. That setup worked fine for years, until it didn't work.
I'm saying we should fix the automated parts of the trading system that are known to act recklessly. Let's just make the simple engineering improvement.
You keep saying things like "FUD" or "illusory." People got OUCH Executed messages at $0.01 and $99,999. They couldn't even tell if they were long or short for hours, until a person made a manual decision. That is scary! Those things really happened. If you understand them, they should scare you.