Can you hit your own bid from your other account?

Discussion in 'Order Execution' started by giggollo, Nov 9, 2006.

  1. Is it illegal to place a bid in your account at broker X and then hit that bid from your account at broker Y? Anyone done this before?
  2. Surdo


    Are you serious?
  3. Nugget


    lol!! just lol!! either way one account looses buddy.
  4. How would that work?

    You would have to own the shares in the first place to sell at that lower bid, or are are you selling to yourself at a higher bid? Either way it makes no sense.

    I guess if you own GOOG you could sell to yourself at $100.00 or $1000.00
  5. I don't know if it is legal but I bet it is done all of the time especially in low volume stocks.
  6. Could someone give an example?
  7. Nugget


    yea but thats just a huge risk

    my software automatically gives you the best price so thats impossible..

    Im still doing the lol thing..;p
  8. Think about how people look for stocks. Volume is important when considering the purchase of the stock. If you have a low volume stock but you want the stock to "appear" as having a spike in volume you can buy 10,000 shares and then sell 9500. You keep doing this all day long. The stock will move up in price but not by much. People will scan the charts and think something big is happening. They jump in, and you sell out.
  9. Nugget


    like I said, dangerous. Anything could happen and then your stock with x amount of shares of this shit stock. Trades arent free. Buying 10,000 share blocks "all day long" would essentially cost you more then your profit will return. You would need to but a million shares to really make it look interesting.
  10. It wouldn't cost that much because you represent most of the shares being sold and purchased in a low volume stock. You are basically setting the bid and you can make it anything you want if there aren't many other takers. You could realistically move the stock up only 1 penny at a time after your first purchase of 10,000 shares.

    I agree it is dangerous, but I bet it can be done profitably.
    #10     Nov 9, 2006