Ah ha...That's probably what was going on. This is the first time I traded a $40 hybrid stock, so I forgot that the LRPs must be low. Thanks for pointing this out. Good job bitstream. I don't know what time you traded it, but when I traded between 9:30 and 9:45, I just got wacked around with no clear move and sucker fills. And by the time it was breakin out later in the day, I was already beaten down, packed up, and sent home..
It terrible....the LRP's need to be moved to a higher level........ http://www.nyse.com/pdfs/activated_lrps.pdf
Thank You MC, thats what I was looking for. My gosh, lrp for MA is 25 cents and for COO is 35 cents...What the heck...This is insane. MA is $90+ and it moves 25 cents in a blink of an eye. Edit: I beleive the LRP numbers change depending on volatility, otherwise it doesn't make much sense..
It terrible....the LRP's need their range to be increased ........ http://www.nyse.com/pdfs/lrp_table.pdf A stock like Newmont falls 3 bucks under the next LRP dollar value range making it 25 cents LRP instead of the current 10. Look at the chart of NEM today and see how brutal the 10 cent LRP rule is for a stock on the edge of the $ value range. Three 10 + moves in the course of an hour. I was wondering why NEM was gapping so wildly then randomly stalling today. Took this to figure it out ....it was the first day of NEM hybrid. Some tweaking of styles is clearly in order unless people want to drive this stock over 50 bucks to catch the next LRP range...anyone ?
I don't trade equities very much but sometimes have a chart up of one of these stocks that gets a disgusting fill. But what about the LRP? Doesn't the stock stop at the LRP, which seems to be set tighter than some of these fills that really spike the chart?
The firm I am at has the LRP's built in to the level 2's so that you can see when the price hits an LRP and the corresponding price action. I dont know this for sure, but in my experience once it hits an LRP the price stalls for like 5-10 secs and then the new LRP is calculated and the stock then resumes electronic trading.
1. With this new hybrid, what percentage of NYSE stocks does it affect or is it all? Any link for the list? 2. Now i used to only use NX to swipe the offer when i see more than 100 shares, do i still do this? Or is this all gone and can use normal nyse bid order to hit the offer instant? 3. Share limit size for NX is gone therefore? (1099) 4. LRF orders can you explain, what is this and when do specialists do this? How does it look on the level 2 screen? 5. I have still noticed the specialist gapping up the stock and doign price improvement, or was it becasue it moved up so fast i didn't see it?
Hey on the NYSE page it says market volatility will be severely reduced because of the hybrid system. Does that mean there will eventually never be a day trading opprotunity again? Serious question...