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Why was my order cancelled or rejected?

Stake is not a direct participant on the exchanges through which the Stake services are provided. Stake’s U.S. partner, DriveWealth LLC (or ‘DriveWealth’), and its investors must comply with the Securities Exchange Act and the trading and operating rules for Nasdaq and NYSE, which the U.S. Securities and Exchange Commission (SEC) and respective exchanges oversee.

All orders submitted through Stake are subject to pre-trade checks and reviews by both Stake and DriveWealth. DriveWealth and Stake consider several factors when reviewing orders, including:

• The size and type of the order submitted
• The terms/conditions of the order
• The nature of the market for the security (demand)
• The recent trading activity of the security
• The transaction consideration (volume and price)
• The frequency in which orders are submitted
• The opportunity for price movement as a result of the order execution

DriveWealth can reject orders if it suspects acts of market manipulation, in complying with its regulatory requirements and risk controls. 

Read more about regulatory requirements for Stake here.

 

Types of orders that may be rejected, cancelled or questioned

An order can be rejected for several reasons and does not necessarily constitute an identified breach of regulation. 

Some common reasons for order rejection include: 

• An order price is placed too far from prevailing market price
• A market-wide trading halt results in missing market data for a security
• A limit order is deemed too aggressive. Our U.S. partner has measures in place to identify unrealistic and unreasonable orders in the context of the current market price.
• Your order is under the minimum size of US$10
• You’re trying to place a limit order for a fractional amount of stock. Limit orders can only be placed/executed as whole units, e.g. if you own 2.5 shares of $AAPL, you can only place a limit order for 2 $AAPL shares – the remaining 0.5 can only be sold via market order.
• You have insufficient buying power or have pending orders that are impacting your buying power  
• An order deemed to be unusual given a security’s recent trading history, such as (ie large or small volume or large % above or below last traded price), which should it execute, may impact orderly trading
• Additional orders entered at the same or different price as existing orders
• An order entered shortly after market open or instructed to execute close to or during the closing auction
• The security you’re trying to trade has been delisted

 

Outside of the common reasons for cancelled orders, a corporate action related to a particular security may also impact your ability to trade it. 

These corporate actions could include the security being subject to a stock split or takeover. The underlying price may have moved significantly, which may render your order invalid.

If your order won’t go through or has been cancelled/rejected and you believe none of the above reasons apply, please reach out to our customer support team and we’ll look into it.