I’m aware of the sub-penny increment rule, but what about if I only buy a fraction of a share and sell it according to the sub-penny rule but my fraction doesn’t increments by a penny?
Example:
I buy 6% of a share (~1/16.666 share) with a price of 50$ with a notional value of 3$(6% of 50). I then sell it for 50.1$. My sell price is correct, since it is not contains sub-penny values. But what about my actual share that i own? In this case after I sell, i will own 6% of the 50.1$ that is credited to my account not the whole share. Which is about 3.006$. Less than a penny. How will alpaca display this value, and how much is actually on my account to withdraw? 3.006$, 3.01$(rounded up to the nearest penny) or 3.00$ (rounded down to the nearest)? I believe it’s not the second option, but it can’t be displayed by the first option either since it is less than a penny. The last option makes no sense either since i gained capital. (0.006$ in this case).
@drest Fractional shares are held as shares with 9 decimals of precision. The ‘sub-penny rule’ only pertains to limit prices. It doesn’t impact the value or quantity of shares one has.
Using your example:
I buy 6% of a share (~1/16.666 share)
You would specify a quantity in your order. For example qty=.06.
You can also specify a notional value. For example notional=3.0 but the actual quantity of shares you will get depends upon the fill price of our order.
I then sell it for 50.1$
You would simply sell your shares. In this case qty=.06.
If the fill price is $50.10 your account would be credited 50.10 x .06 rounded to the nearest penny or $3.00.
Hope that makes sense.