Last night I placed a an order to buy 5000 share of Zhone. It was a Good For The Day limit order for $0.85. This morning it was executed for $0.8156 as a single transaction. Looking at NASDAQ Intraday Trade History, it was the second execution of the day.
I am happy with the transaction, but a little surprised. Surprised that it was not executed at $0.85. This is an Etrade account. It just looks like someone wanted to sell really bad and was willing to sell at below the bid. Is this normal? I'll appreciate any explanation.
This has happened to me before with TLGD many years ago but is rare. You set the trade during off hours and when trading started 2 things could have happened:
1) A seller (or institution) wanted out and your order got sucked into a larger order to fill it. It used to be the market maker would use its liquidity to perform the transaction if it was appealing but it depends on the volume, security and situation
2) A little manipulation. Your order was rather sizable. If it were a few hundred shares the trade could be used to create an artificially low price to throw off technical trades or induce more selling. I am not sure if .8156 is a magic number from a technical perspective (doubt it) but this has happened.
You would never see this in a largely traded stock like MSFT or AAPL. Crazy things like that happen from time to time with stocks like ZHNE and just be greatful for the execution you got. My TLGD trade worked out really well and ended up being the low before bouncing but was only a few hundred shares.