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Sean R.

PSA: Range orders in DAS might not work the way you'd expect

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Just a head's up that it's possible for range orders in DAS to become open positions with no stop. 

I use range orders a lot in my trading, and I noticed that occasionally the range order would become a limit order without a stop.

This seemed odd to me, so I checked with DAS. They explained that when the price of a stock reaches the target price of a range order, the range order converts into a single limit order with no stop. If that limit order is not filled then you are left with an open, unprotected position.

For example, if you have a range order set for $10.00 and $12.00, when the price of the stock reaches $12.00, the range order becomes a limit order for $12.00. This is fine, but the issue is that DAS does not leave a corresponding stop in place at $10.00. If the newly created $12.00 limit order isn't filled and the stock's price reverses, it's possible the price will drop below your intended $10.00 stop.

I have seen scenario occur when price briefly wicked up past my target price, or when price touched my target to the penny then immediately reversed. Again, it only happens when you do not get filled, and it does not happen often, but when it does happen it's not fun.

With this information in mind, it's probably not a good idea to set a range order and leave your station since there is a small but real chance you will end up in an unprotected position.

I have asked DAS to consider changing how range orders work so that this scenario is no longer possible.

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As a further PSA to anyone who comes across this thread searching for information on range orders, DAS now has a RangeMKT order that will convert to a market order instead of a limit order upon hitting your target price, guaranteeing a fill.    Make sure you're updated to the latest version.

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