Failure to Execute
Delivering The Results You Deserve
Types of claims
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Brokers have a duty to properly execute customer orders. Failure to execute trades, also known as a failure to follow directions, occurs when a broker does not execute a trade ordered by an investor. Other cases include the failure of the broker to: obtain the best possible price during an authorized trade; make the trade in a timely manner, or carry out a pre-specified action at the price the client believes it will be.
If an investor directs his/her broker to sell or buy a given security and it is not done or not done in a timely manner, the broker will be found in violation of his/her duties to the investor. Even in such cases, it can often be difficult to prove especially if the order was conveyed verbally and not followed up with a written order. For this reason, it is important that you always maintain a paper trail by issuing written orders, even after confirming your request verbally with your broker.