There are a multitude of scenarios that could happen based on how you have your risk settings set, but lets go through some examples which should give you a good gist on how they work.
Lets say we enter trade x at a premium of 1.00 for 5x contracts, for a total trade price of $500. Lets also say your trade settings are set for:
- 100 trades in 5 days
- Max Option Premium of $1.50
- Max Total Trade Price of $300
- Allowable Slippage at 2%
Example Scenario One: Your max premium is lower than the signaled trade, but your max trade price is higher, resulting in the account attempting to average down the number of trades to execute a buy within your limits (in this case it would buy 3x instead of 5x, since your settings will allow $300 max trade.) If it’s not possible for the program to scale down the number of contracts, then the trade will be skipped completely.
Example Scenario Two: Your max premium is lower than the executed trade, and so is your max trade price. This would result in a total skip of that trade for your account, since there would be no possible way to scale down the number of contracts for that entry.
These are the two most likely scenarios to arise that would cause an executed trade to be skipped on your account outside of TD Account errors, or max trade limits per day being hit.