Can someone explain this...

I have seen this many times:

In the premarket, at aroung 8:30 AM, I try to buy a stock, say MSFT. I place an order (I use TradesStation) at the best bid, which is usually an ECN, and I immediately see it on ISLD.

Now let's say that the best bid for ECNs is like this (in pre-market MMs don't count, since filling an order is not mandatory):

ISLD 46.85 500
INCA 46.85 400
ARCA 46.85 1000

In a minute or so, I see a trade crossing the tape on T&S like this:

46.85 1900 Bid

for the exact amount the 3 ECNs are bidding. And then I see that again and again, always for the same number of shares that are at the best bid, but of course my order is not filled, and then the market moves to a new level, and see the same thing again.

What is the explanation of this?

 

a bid on the tape is not a trade.no one was willing to sell to you at your bid.

 

That is weird...Vhehn, I dont think you understand...other prints were going off at the bid, and he couldnt get filled. Possibly its INCA going off. What ECN were you using? Get an INCA bookmark: bookmark.instinet.net is the URL. Did the size on other ECNs change? Maybe it was just someone further ahead of you in line on your, or another ECN.

 

I have to admit that I didn't know how to read the T&S window. It was just the change in the bid or ask that I was looking at and I thought that they were trades.

Sorry about that...

 

some t&s show the bids and the asks and the trades.he said he saw this:
46.85 1900 Bid

i think he is confusing a bid on the t&s for a trade which would be labeled as a trade

 

T-

I made the same mistake when I switched over to Tradestation.
I saw afterhours bid come across the Time and sales for $1.00
on a stock that I bought before close @ $5.50. Almost *hit all over myself. Its not a print. All those are marked- - Trade.

Just go to the T&S window and click properties, then remove the
bid and ask notifications. I personally just have time, price and size in my T&S window.

Keeps it simple.


cheers-


momo

 

I have seen a similar situation in both pre and regular trading hours. Some brokers I am guessing still pay for order flow. So a client of Broker X sees your bid and sends his order at that price. The order gets filled who knows where, at "YOUR" price. This has happed to me both on the bid and ask, usually in issues that don't trade a lot of shares.

Just A Theory

 

There are hidden orders on the exchanges in pre market. Sometimes they will execute "out of nowhere".