Each broker will have its own API-generated error message that is sent back to us if an error rejection is encountered on their end. Broker rejection errors can occur from a number of situations, including PDT violation, stepping on strikes, or an incompatible account type.
This page will outline the most common error messages you might encounter when submitting orders on the autotrading platform through your brokers API.
It is important to note that these error messages are returned from the broker and are not generated by Option Alpha or the autotrading platform. Each broker has their own unique error language, that will vary slightly depending on the direction of the rejected trade.
This article is intended to help you determine the root cause for the error message that appears in your canceled order information.
Common Broker Errors
Overlapping or Stepping on Strikes
If a new position order offsets the legs of an existing position, the broker will generate an error to prevent "stepping on" the existing legs. This error will display regardless of whether overlapping strikes occur within a single bot or two separate bots, and the broker does not differentiate between order origination within the same brokerage account.
TD Ameritrade responds: "Order rejected by TD Ameritrade: The order is not an opening transaction. It will decrease or close an existing options position"
TradeStation responds: "Order rejected by TradeStation: EC804: Boxed positions are not permitted. To close long position, try a "Sell" order"
Tradier responds: "Order rejected by Tradier: Backoffice rejected override of the order. Unexpected SellShortOrder"
In situations where you have a resting limit order that was created through your brokerage platform and a bot attempts to perform a closing action of its own for the same position, the broker will reject the order.
TD Ameritrade responds: "Order rejected by TD Ameritrade: The order may result in an oversold/overbought position in your account. Please check your position quantity and/or open orders"
TradeStation responds: "Order rejected by TradeStation: EC703: You are long 1.00 shares with 1.00 remaining on sell orders!"
Tradier responds: "Order rejected by Tradier: Backoffice rejected override of the order. ShortPositionCrossZero"
Pattern Day Trader restrictions are imposed by the brokerage and prevents people with less than $25,000 in their investment accounts from engaging in day trading. If an order violates the PDT rules each broker will respond with their own error and impose the restriction the following day.
This tutorial explains how to avoid the PDT rule.
TD Ameritrade responds: "Order rejected by TD Ameritrade: Because of an EM restriction on this account, you can not open any new equity and equity option positions"
TradeStation responds: "Order rejected by TradeStation: EC501: Day trading margin rules, too many opening trades, please call Trade Desk"
Tradier responds: "Order rejected by Tradier: Backoffice rejected override of the order. DayTraderPatternRestriction"
Additional rejection errors for TD Ameritrade can be found here.
Additional rejection errors for Tradier can be found here.
TradeStation does not offer a list of API generated rejection errors at this time.