(MA5008) The share quantity entered for this order is greater then the maximum allowed?
Summary of User’s Issue and Solutions Discussed:
- Main Problem: The user, Genkidin, encountered an error message when trying to buy to close 14 contracts for XELA, despite having a cash account.
- Solution 1: Fidelity representatives explained that the error may occur due to trading within a margin account and recommended ensuring the trade type is set to cash before finalizing the trade.
- Solution 2: Genkidin discovered a workaround by breaking the order into smaller quantities (e.g., buying to close 5 contracts at a time), which allowed the trades to go through.
- Solution 3: Fidelity noted that the MA5008 error might indicate that the order exceeded volume thresholds or was not aligned with current market prices, suggesting the use of limit orders or reducing the number of shares as potential resolutions.
Here’s the full thread
I have 1500 shares, I sold to open 14 contracts, im NOW trying to buy to close the 14 contracts. But i get that error message – Why cant i buy to close these contracts?
The Stock in question is XELA.
Hi @Genkidin – (งツ)ว , thanks for stopping today. This is an error you can receive when trading within a margin account.
Accounts that have enabled the margin feature will have the trade “type” default to margin in the trade ticket; however, you may choose to change the trade ‘type’ to cash before finalizing the trade. Depending on what trade type you placed your original option order in today, you would need to place the trade to close the position in the same trade type.
Read more about trading with a margin account here: https://www.fidelity.com/trading/faqs-margin
Keep in mind that its important to understand that margin accounts have a feature called Autojournaling. This feature moves eligible holdings from cash to margin when a security becomes margin eligible. Eligible assets are normally moved automatically to margin the day after settlement.
This means that even if you were to buy a position in Type Cash today, it will be automatically moved to Type Margin tomorrow. In that example, you would need to place your trade to close the position in Type Margin.
Please let me know if any other questions come up. It’s great have you here! 🟢
Options trading entails significant risk and is not appropriate for all investors. Certain complex options strategies carry additional risk. Before trading options, please read the Characteristics and Risks of Standardized Options(http://www.optionsclearing.com/about/publications/character-risks.jsp). Supporting documentation for any claims, if applicable, will be furnished upon request.
This is a cash account and I am selecting cash under the “type” box in ATP
I have figured out my own workaround, I change the quanity to BUY to CLOSE 5 of them and it allows me too.
i had to BTC 5, and then another 5, and then another 4.
SEEMS like a weird broker rule if you ask me
Happy to chime in here, @Genkidin – (งツ)ว.
The MA5008 error is presented when the order that is being placed by the customer exceeds certain volume thresholds, or the limit prices are not reflective of the current market for the security. This error is often notifying the customer that their sell order quantity is larger than the last 20-day average trade size. Larger than usual orders may impact execution prices. The error can sometimes be resolved by using a limit order and/or reducing the number of shares.
Based on the above explanation of the error, it sounds like this had more to do with the specific underlying security or contracts you were trading. It looks like you found a solution by placing a lesser quantity trade in this instance. If you ever have questions about a trade, feel free to reach out on our other social media platforms and we can connect on a secure channel to diagnose the issue or point you in the right direction.🟢
Yeee. Gracia