eTrade 2007 Annual Report Download - page 200

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For example, if you’re holding 500 shares of XYZ, and have either written two covered calls or have an order to write some covered
calls, no order you placed for any of the shares is eligible for the guarantee.
Note:
If an order you place involves a short option position, we’ll send a message to your account before market open on the next trading
day.
Understand how halted, locked, or crossed markets affect the guarantee
Your order will be disqualified for the 2-Second Execution Guarantee if there is a:
•
Trading halt: The security is not currently being traded by the exchange.
•
Locked market: The bid and ask for the security are the same.
Note:
If an order you place is disqualified because one of these conditions occurs, we’ll send a message to your account before market open
of the next trading day.
Learn how orders stopped for price improvement affect the guarantee
If a qualifying order you place is stopped for price improvement, it won’t be eligible for the guarantee. Price improvement occurs
when your order is held briefly because a better price than that which is currently quoted may be available elsewhere.
Note:
If an order you place should be stopped for price improvement, we’ll send a message to your account before market open of the next
trading day.
Learn how fast markets can affect the guarantee
If you place an order for a security considered to be in a fast market when the order is live, it will not be eligible for the 2-Second
Execution Guarantee.
Should this happen, we’ll send a message to your account before market open of the next trading day.
Fast markets are characterized by heavy trading and highly volatile prices for a particular stock. These usually occur as a result of an
imbalance in trade orders. In addition, fast market conditions can occur across entire markets. This occurs only rarely, but if fast
conditions occur market-wide, you will see a notice to this effect on your Order Preview and Confirmation screens.
Note:
Determining whether a security is trading in a fast market, or whether fast conditions exist market-wide, is at the sole discretion of
E*TRADE Securities.
Learn how multiple, like orders affect the guarantee
If you place orders on the same stock and the same side of the market within 20 seconds, only the first order will be eligible for the
execution guarantee.
For example, if you place a buy order for a given stock, and place another buy order for the same stock within the next 20 seconds, the
second order will not be eligible for the execution guarantee. The same situation would apply to two sell orders placed for the same
security within 20 seconds.
Note:
Should this apply to your order, we’ll send a message to your account before market open of the next trading day.
A-9
•
Crossed market: The ask and bid prices are reversed (i.e. the bid price is higher than the ask price).