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This(FAQ) document is intended to supplement the article "What Are U.S. Penny Stocks / Micro-Cap Stocks," helping clients understand the risk control measures that may be triggered when trading U.S. penny stocks and micro-cap stocks, as well as the related order processing procedures.
Your order may have been rejected or not executed because it was subject to risk controls applied by the firm and/or its clearing firm. These controls are designed to manage risk and maintain fair and orderly markets.
Firm risk controls are automated or manual measures that may limit, delay, or reject orders based on market conditions and risk factors such as liquidity, volatility, pricing transparency, or data availability.
These controls may apply to any security at the discretion of the firm, but they are more likely to affect low-priced, micro-cap, nano-cap, or less liquid securities.
Yes. Orders are not guaranteed to be accepted or executed. Even if an order is otherwise valid, it may be rejected, delayed, or limited if it does not meet applicable risk control parameters.
Execution outcomes may vary among customers submitting similar orders due to the application of risk controls and prevailing market conditions.、
Yes. The firm and/or its clearing firm may apply, modify, or remove risk controls at any time without prior notice based on market conditions or regulatory requirements.
No. These controls are part of the firm’s risk management and regulatory obligations and cannot be overridden by customers.
You may experience:
Delayed or rejected orders
Partial or no execution
Difficulty selling a position after purchase
You may consider:
Using limit orders instead of market orders
Adjusting your order price or size
Monitoring market conditions before placing trades
For more details, please refer to the Firm Risk Controls Disclosure available on our website.
