Your order was not executed – are you now entitled to compensation? Under what circumstances are investors entitled to compensation from an exchange, trading provider, broker or financial services provider if their order was not executed?

This compensation can be in the form of money as well as securities or other assets. It may also include compensation for the loss of time or additional costs incurred as a result of the order not being executed.

If an order is not executed due to technical problems, late trading hours or poor execution quality, compensation will be paid. In such cases, the investor will be compensated for the lost time and additional costs incurred due to the non-execution of the order.

Compensation for non-execution will only be paid if the exchange or the financial services provider has made a mistake. In such cases, investors must file a lawsuit to receive compensation for their losses.

Non-execution damages are an important method for investors to obtain compensation for the non-execution of their order. If an investor suspects that an order has not been executed, they must report this to the exchange or financial services provider.

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Order not executed: Compensation for investors?

Compensation for orders not executed refers to the financial compensation owed to investors when an order is not executed according to their wishes.

Order not executed – when are you entitled to compensation? If a broker or market participant does not execute an order according to the investor’s wishes or does not buy or sell an asset at the agreed price, the investor is entitled to compensation.

The investor can sue for damages, which may include, among other things, the time value of the order and the costs of executing the order.

Causes and reasons for an unexecuted order: examples and consequences

Unexecuted orders are orders that were not executed despite a client’s explicit instruction to carry out a certain activity. This can have various causes and consequences.

Causes

There are a number of issues that can lead to unexecuted orders, including overcapacity and lack of liquidity.

A customer’s order cannot be executed for a variety of reasons. Firstly, it may be due to technical problems. When a client places an order through an online platform, there may be delays in execution or technical problems that prevent the purchase from being executed.

Human error can also cause an order not to be executed if an employee does not execute the order or misunderstands it. Occasionally, an order may not be executed because the requirements are not met, e.g. when trading securities for which a minimum holding period applies.

Fraudulent financial service providers may deliberately fail to fulfil your request for their own benefit.

This can happen in a number of ways, including:

They manipulate the market by artificially buying or selling certain shares to influence the price and make profits.
They engage in insider trading by using non-public, confidential information to trade in the market.
They merely receive the money and do not carry out any transactions instead of investing it in the market.

To reduce the risk of becoming a victim of fraud, it is important to choose reliable, audited and regulated financial service providers. In addition, it is advisable to monitor all investments closely and react quickly to any signs of fraud or strange behaviour.

Impact

Order not executed Damage compensation: If an order is not executed, this can have negative consequences for the client. Firstly, there may be financial losses if the price changes after the order has been placed but before it has been executed.

There may also be legal consequences if a client expects a particular trade and it does not occur. Similarly, an unexecuted order can damage a firm’s reputation if clients are concerned about the lack of execution.

It is therefore critical for clients to ensure that their orders are properly executed. Before placing an order, they should read the rules and guidelines thoroughly. This will ensure that the purchase is properly executed.

If an investor’s order is not executed, they may place a new order. However, if an alternative order cannot be executed, a loss may be incurred. This is especially true if the price after the order is lower than the investor’s order price.

This also applies if the investor places a buy order after the price has risen.

If an investor places a stop-loss order in advance, he can often avoid losses from orders that are not executed. A stop-loss order is an order that is automatically executed when the market reaches a certain level. In this way, the investor can ensure that his losses do not exceed his expectations.

Order not executed – compensation: What requirements must be met?

Claims for damages in the case of a non-executed order are linked to certain criteria.

First, the order must be linked to the client’s account and assigned to the client.
Furthermore, the company that accepted the order must have been obliged to execute it.
Furthermore, the order must have been executed within a reasonable period of time.
The company must be able to prove that it was not at fault if the order was not executed.

If the client suffers financial loss, he has the right to claim damages from the company.

What are the legal bases for damages in the case of an unexecuted order?

On the basis of the relevant legal ground, a claim for damages arises in the case of an unexecuted order. This arises from § 280 of the German Civil Code (BGB), which regulates the general law of obligations.

In addition, other legal provisions, such as commercial law, may be applicable. In order to decide whether a legal basis is appropriate, the respective facts of the case must be examined.

How to enforce damages for an order not executed?

Order not executed – claims for damages: If a broker or financial services provider fails to execute an investor’s order, the following measures may be taken:

Complaint to the broker: The investor can lodge a formal complaint with his broker indicating the non-execution of the order.
The investor may initiate an investigation by the competent supervisory authority to investigate whether there has been a breach of applicable capital market law.
Since a non-execution of the order may lead to financial losses, the investor should investigate whether he is entitled to compensation.
Consult a lawyer: The investor may consult an experienced lawyer to explore his legal options and protect his rights.
If all other methods do not lead to an adequate solution, the investor can initiate legal proceedings to obtain compensation.

If an order has not been executed, the investor must act quickly and take the appropriate measures to preserve his rights and file a claim for damages.

When does it make sense to contact a lawyer in case of an unexecuted order?

If an investor has suffered a financial loss because a broker failed to execute his order, a lawyer can help in the following ways:

The lawyer researches the specifics of the case, including the date, causes and effects of the unexecuted order.
Legal assistance: The lawyer informs the investor of his or her rights and the legal options available for claiming damages.
The lawyer may pursue the claim for damages in court or seek other dispute resolution methods such as arbitration.
If legal action is taken, the lawyer represents the investor in court and protects his or her interests.
The lawyer can also initiate talks with the broker to reach a fair settlement.

Overall, a lawyer can help the investor protect their rights and claim damages if an order was not executed and financial loss was incurred.

Order not executed – claim for compensation?

When an order is not executed, compensation – the enforcement of damages – is an important tool to ensure that investors are properly compensated. It is important to realise that compensation is not only crucial for the investor, but also for the broker.

Compensation can be in the form of money or other forms of compensation. It is important to know that the investor is entitled to compensation, but the broker cannot unilaterally claim damages.

It is important to consult a lawyer to clarify the rights and obligations when an investor claims damages.

Claim damages for unexecuted orders immediately. Contact us here to learn more about your rights.

Order not executed – claim for damages?