Why is the selling price of US stocks lower than each transaction but unable to close?-FTFT International Securities and Futures Official Website - Hong Kong Stock Account Opening

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Why is the selling price of US stocks lower than each transaction but unable to close?

Due to the trading rules of specialized traders and market makers in the United States, a small number of clients in the US stock market may experience situations where the selling price is lower than the transaction by transaction but cannot be executed. The reasons are as follows:

1. Each transaction will only be for reference purposes：

Under the trading system of the Hong Kong securities market, the majority of transactions are conducted in the market. After each transaction is completed, we can see relevant information on the real-time market system. In theory, the market needs to digest all orders at the best price before it can trade at another price. On the other hand, under the trading system of the US securities market, most transactions are conducted through specialized dealers and market makers. After each transaction is completed, they need to announce it to the public within 90 seconds. In this sense, the information we see on all real-time market systems is delayed. In other words, for example, if I set a sell price of $10.01 and then see that the final transaction price is $10.02, it may not necessarily be a successful transaction because the $10.02 transaction may have occurred 90 seconds ago.

2. Unspecified "hand" in the US stock market：

In the Hong Kong stock market, the buying and selling units for stocks are "lots", for example: one lot of Tencent (700) is 100 shares, and one lot of HSBC (00005) is 400 shares. In the US stock market, the selling and buying unit for stocks is' stock '. However, in order to reduce trading costs, open and short position risks, specialized traders and market makers trade in units of 100 shares. In this sense, all unspecified "lots" of US stocks are 100 shares. If the number of shares in an investor's order is not a multiple of 100, they may need to wait for a period of time for other investors to place orders at similar prices, and then combine them with the original order capital to form a multiple closer to 100 before specialized traders and market makers can trade. This is also the reason why each transaction record is higher than the selling price or lower than the buying price, and the selling or buying price has not been executed. Sometimes, specialized traders and market makers withhold certain order periods, waiting for other investors to place orders at similar prices. At this time, the investor may not be able to cancel the order on their own and needs to contact the securities company to call the relevant specialized traders and market makers to request the release of the relevant order. In this situation, a securities company that provides real-time services is very important.

3. Short selling order issue

At the moment of issuing a short selling order, there may be a situation where the short selling stocks are out of stock, but the order will not be immediately rejected. If there is stock and the price is reasonable, the order will be executed. On the contrary, if there is no stock at the close, or if there is stock but the price is not suitable, the order will be cancelled.

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