Learned something new about OTC buying today. I've
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Posted On: 04/27/2023 2:28:08 PM
Learned something new about OTC buying today. I've been buying OTC stocks for years but never knew this.
Have recently tried to buy a small number of shares of a couple of different OTC stocks and my orders weren't showing up on level 2 even at the OTC Markets site. And my orders wouldn't get filled unless I hit the ask price.
I called Fidelity and they had no idea what was going on but Etrade told me that my order needed to have at least 2500 shares to show up on level 2 and get filled. So I entered a 3000 share order and it showed up as the high bid.
I found a table on the FINRA site which shows the minimum quotation size requirements for OTC.
If the stock is trading between $0.20 and $0.5099, the share size needs to be 2500 or more to get quoted. More shares are needed for lower prices and fewer for higher prices. So if it's smaller than the minimum amount of shares needed, your order can go unfilled even if it's the high bid .
https://www.finra.org/rules-guidance/rulebook...rules/6433
Have recently tried to buy a small number of shares of a couple of different OTC stocks and my orders weren't showing up on level 2 even at the OTC Markets site. And my orders wouldn't get filled unless I hit the ask price.
I called Fidelity and they had no idea what was going on but Etrade told me that my order needed to have at least 2500 shares to show up on level 2 and get filled. So I entered a 3000 share order and it showed up as the high bid.
I found a table on the FINRA site which shows the minimum quotation size requirements for OTC.
If the stock is trading between $0.20 and $0.5099, the share size needs to be 2500 or more to get quoted. More shares are needed for lower prices and fewer for higher prices. So if it's smaller than the minimum amount of shares needed, your order can go unfilled even if it's the high bid .
https://www.finra.org/rules-guidance/rulebook...rules/6433
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