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I have accounts at ETrade and TD Ameritrade. If I place limit buy orders for a dividend-paying stock/ETF, etc., will the price automatically adjust (drop) on the ex-dividend date for the stock/ETF, etc., or I should do it myself?

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No, it will not.

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At Fidelity the price adjusts automatically on ex-date unless you specify otherwise.

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GoldenSacks said:   At Fidelity the price adjusts automatically on ex-date unless you specify otherwise.
seriously? an order buy price changes based on the ex-dividend adjustment? that seems crazy.

more likely, you mean the stock price adjusts only.

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solarUS said:   
GoldenSacks said:   At Fidelity the price adjusts automatically on ex-date unless you specify otherwise.
seriously? an order buy price changes based on the ex-dividend adjustment? that seems crazy.

more likely, you mean the stock price adjusts only.

  I found that strange but this Fidelity FAQ seems to confirm it
FAQ said: How do dividend distributions affect open orders?

Although different exchange rules may exist for adjusting orders when a security pays a dividend, the general rule is that good 'til canceled (GTC) orders below the market are adjusted for the dividend amount. The price of your order will be automatically reduced on the "ex-dividend" date by approximately the amount of the upcoming dividend unless you note it as a do not reduce (DNR) when you place the order. Orders below the market include: buy limit, sell stop loss, sell stop limit, sell trailing stop loss, sell trailing stop limit.


 

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solarUS said:   
GoldenSacks said:   At Fidelity the price adjusts automatically on ex-date unless you specify otherwise.
seriously? an order buy price changes based on the ex-dividend adjustment? that seems crazy.

more likely, you mean the stock price adjusts only.

  
Why is it crazy? It is the right thing to do - orders should be adjusted for dividends, splits etc. You wanted to buy something for $80 and the stock was trading at $82. The stock declared a $5 dividend and it opens the next day at $77. Why would it be OK to buy it at $77 - the buyer is effectively paying the $82 price and not the $80 price that he wanted. 

Finra adjustment rules
 

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It was years ago, but ETrade did this dividend adjustment for me too. Interactive Brokers does not do it.

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TDA does it.

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Does anyone have a process to adjust orders for 3am Trump tweets?

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PrincipalMember said:   
solarUS said:   
GoldenSacks said:   At Fidelity the price adjusts automatically on ex-date unless you specify otherwise.
seriously? an order buy price changes based on the ex-dividend adjustment? that seems crazy.

more likely, you mean the stock price adjusts only.

  
Why is it crazy? It is the right thing to do - orders should be adjusted for dividends, splits etc. You wanted to buy something for $80 and the stock was trading at $82. The stock declared a $5 dividend and it opens the next day at $77. Why would it be OK to buy it at $77 - the buyer is effectively paying the $82 price and not the $80 price that he wanted. 

Finra adjustment rules 

because stocks don't always trade on the ex-div date exactly according to the dividend adjustments. if it was "THE RIGHT THING TO DO" then why doesn't every single broker do it?

I guess I trade knowing full well when the ex-div is, and how much it pays. I don't want my broker holding my hand and adjusting orders for me.

rated:
solarUS said:   
PrincipalMember said:   
solarUS said:   
GoldenSacks said:   At Fidelity the price adjusts automatically on ex-date unless you specify otherwise.
seriously? an order buy price changes based on the ex-dividend adjustment? that seems crazy.

more likely, you mean the stock price adjusts only.

  
Why is it crazy? It is the right thing to do - orders should be adjusted for dividends, splits etc. You wanted to buy something for $80 and the stock was trading at $82. The stock declared a $5 dividend and it opens the next day at $77. Why would it be OK to buy it at $77 - the buyer is effectively paying the $82 price and not the $80 price that he wanted. 

Finra adjustment rules

because stocks don't always trade on the ex-div date exactly according to the dividend adjustments. if it was "THE RIGHT THING TO DO" then why doesn't every single broker do it?

I guess I trade knowing full well when the ex-div is, and how much it pays. I don't want my broker holding my hand and adjusting orders for me.

  This would have been my answer too. Plus, going ex-div is just one factor that has influence on the price. Having the broker adjust things for you feels like it being turned into a market order.

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solarUS said:   because stocks don't always trade on the ex-div date exactly according to the dividend adjustments.

 

  
Huh - what are you talking about? As far as I know, every stock is adjusted by the dividend on the ex-div date. Now it is a different thing that the stock may go up or go down at the open and it may not look like that it was adjusted by the dividend but similar thing also happens to all stocks - there is no guarantee that all stocks will open at the same price as it closed the previous day. Most finance site will report the stock gain and loss for the day from dividend adjusted price.

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PrincipalMember said:   
solarUS said:   because stocks don't always trade on the ex-div date exactly according to the dividend adjustments.

 

Huh - what are you talking about? As far as I know, every stock is adjusted by the dividend on the ex-div date. Now it is a different thing that the stock may go up or go down at the open and it may not look like that it was adjusted by the dividend but similar thing also happens to all stocks - there is no guarantee that all stocks will open at the same price as it closed the previous day. Most finance site will report the stock gain and loss for the day from dividend adjusted price.
 

traders often ignore the system-generated open price.

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solarUS said:   
PrincipalMember said:   
solarUS said:   because stocks don't always trade on the ex-div date exactly according to the dividend adjustments.

 

Huh - what are you talking about? As far as I know, every stock is adjusted by the dividend on the ex-div date. Now it is a different thing that the stock may go up or go down at the open and it may not look like that it was adjusted by the dividend but similar thing also happens to all stocks - there is no guarantee that all stocks will open at the same price as it closed the previous day. Most finance site will report the stock gain and loss for the day from dividend adjusted price.

traders often ignore the system-generated open price.

  
I think you meant to say that novices who don't understand ex-div, ignore the system generated open price. 😉

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