Best Execution on NYSE

Discussion in 'Order Execution' started by tito, Apr 20, 2004.

  1. tito


    I am planning to increase my trading share size and would like to ask what is the best way to get executed on a 2000 - 3000 share order on the NYSE. Are there any chances of price improvement when trading this lot size?
    I normally use NX because of its execution speed but have to hit it a couple of times since it limits you to 1000 shares per order.
    Thanks for any suggestions.
  2. Mecro



    You are in for a world of fun, my friend. Yes you do get price improvement but expect to be making that price improvement when you market out of trades that are not going you way.

    I would strongly suggest sizing up slowly. Not from 1000 to 2000-3000 but more like 1000 to 1200, then 1500. I would suggest taking partial profits, using limits and market orders for parts of your whole size. Market out 2000-3000 shares in any besides the highest liquid stocks and expect to lose 5-10 cents in slippage.
  3. If you MUST get into the position try crossing the mkt with a limit order using an acceptable (you must decide how much is to get in/out this second) price outside the bid/offer. By crossing you may get a piece on the bid some at the offer and maybe a little in between ensuring a decent avg price. Never go out at the mkt...even if you must cross by .25 or >.

    just my .02

    Good luck
  4. qazmax


    You will get all the price improvement you can stomach.

    Fade a dime then improve a penny!!

    When NYSE says they improve a large percentage of trades, it is not calculated from the time you pull the trigger. It is calculated from the market after the specialist makes an adjustment to their market.

  5. there is also a 30 second rule in between nx I sell 1/2 position market (say 1500 shares) and read specialists fill accordingly......if I get filled on the bid and have doubts about the position, Ill already have the 1000 cued up and hit the bid and sell the balance of 500 shares market.......just one way to do it....NYSE is ridiculous.