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online brokerage, what should I do?

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gelliotg

Guest
I have been doing online trading for the past couple of months with a big on-line trading firm. The stocks I buy are the really cheap otc type. I tried to buy a security that was quoted as selling at 0.001 per share, and I tried to buy 60,000 shares. The brokerage firm says that on this type of otc stock, you must have to funds in your account, prior to making the purchase. I was unable to process my order as I have been told that I should have as a limit order, so I placed it as a Market order, knowing full well that if the purchase price was more than the 100.00 cash in my account the trade would be rejected. Well, much to my surprise, This trade was executed, at 0.25 per share and giving me a bill of 15,000 dollars. The firm refused to reverse the trade saying that they had no control of the price on a market order, but I maintain that because of what their literature states, this trade should never have been allowed to execute at this price. They have since sold off the positions that were in my acount to cover part of the loss, and this security that cost me 15,000 dollars, was sold for a grand total of 600.00 dollars. After sending a letter to the CEO of the company, I finally got a call back from a person who is willing to negotiate, and take half the loss. They sold off the $ 3,000.00 of stock that I had, and told me that I still owed them 12,400.00, and now they want to cut it down to six thousand. SHOULD I SETTLE FOR THIS OR GO ALL THE WAY TO ARBITRATION?
 



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