This would have the consequence that if you see that XXXX is trading at $Y, phone up your broker and ask to sell your holding in $XXXX, it could very well end up selling at $Y/2.
That’s a thing that can happen already, but the delay between saying “sell” and actually selling is typically measured in seconds rather than hours, which makes big divergences like that less likely.
Of course you can avoid this by not saying “please sell 100 shares of XXXX” but “please sell 100 shares of XXXX unless the price drops below $Z, in which case don’t”. But this is more complexity than most retail investors want to handle :-).
This would have the consequence that if you see that XXXX is trading at $Y, phone up your broker and ask to sell your holding in $XXXX, it could very well end up selling at $Y/2.
That’s a thing that can happen already, but the delay between saying “sell” and actually selling is typically measured in seconds rather than hours, which makes big divergences like that less likely.
Of course you can avoid this by not saying “please sell 100 shares of XXXX” but “please sell 100 shares of XXXX unless the price drops below $Z, in which case don’t”. But this is more complexity than most retail investors want to handle :-).