Best Way to Short on Nasdaq

Discussion in 'Order Execution' started by kelly74, Nov 9, 2005.

  1. kelly74


    What is the best route and order type to use for short selling a Nasdaq stock?

    (In case it matters, my orders are usually 1000 shares in stocks that do 500,000 to 1 million shares a day.)

    I use ARCA limit orders currently because ARCA doesn't have an uptick rule (I think). But I'm wondering if there is a better route that would improve my fills.

    Thanks in advance, Kelly
  2. mnx


    i think your only other option (to avoid the uptick rule) is INET...
  3. kelly74


    My understanding is that INET is subject to the uptick rule sometimes whereas ARCA is not.

    Assuming ARCA is the only choice, I wonder if it is best to enter a simple proactive ARCA limit order for shorts, or if there are other ARCA order types that work better.

    Again, thanks for any and all help!
  4. def

    def Sponsor

    they are all subject to the uptick rule.
  5. mnx


    They may be subject, but AFAIK they don't enforce (arca and inet. on nasdaq).

  6. volente_00


    I used to bang shorts off all day long on INET
  7. GHJ



    If ARCA is subject to the uptick rule on NASDAQ stocks why do they allow people to short on downticks?

    They used to automatically apply the uptick rule when shorting but now they don't--at least when hitting ARCA bids.

    I could be wrong but I'm pretty sure that ARCA is NOT subject to the uptick rule if the trade occurs on the ArcaEx exchange (i.e. when using ARCA to whack an ARCA bid).

    One question I'd have is, can one legally do the same thing on INET currently (i.e. use INET to short by whacking a downtick INET or ARCA bid).
  8. zdreg


    arca has an exemption for nasdaq stocks
  9. def

    def Sponsor

    i stand corrected then.
  10. def I thought the uptick rule was phased out for a whole bunch of nasdaq and nyse stocks?

    #10     Nov 12, 2005