Is this normal?
On Tuesday evening I placed an order with Sharebuilder to purchase shares of Zillow. I was quoted $24/share and had enough liquidity in my account to cover up to $28/share for the amount I was looking at. Unfortunately I made a big mistake in placing the order when I forgot to set a Buy Limit at $28.
I awoke Wednesday afternoon to find out that the trade executed at $60/share and nearly had a stroke. I have a hard time believing that the first chance they had to execute the deal was during the absolute intra-day high.
My question: Is it legal for a broker to execute a trade that would overdraw my account? I don't have a margin account set up.
I got absolutely creamed on this and realize a big part of it was my stupid mistake, but executing a trade at over 2x the quoted price just seems wrong if the person doesn't have the cash to back it up.