actually what I'm really looking for is an order that is 100% not visible. like if I bid @ .50 100 shares. and 0 shares are still displayed, then someone else bids 100 shares @ .50, it displays 100 shares, but there really are 200 shares there. then a sell market order comes in for 100 shares. I was thinking I'd get filled because I was there first, so you still see 100 shares bid @ .50 But from my understanding this is not possible, to be totally hidden
This is possible but on on the on the Island (NSDQ) ECN. There you can be completely hidden. However, you lose your priority in line to those who show - if I post 100 shares in front of your invisible order, I get filled first.
The general rule is that a displayed order takes priority over a hidden order at the same price, even though the hidden order got there first.
Ok lets do it a little more complicated. What about an iceberg order where only a part of the order is displayed? http://individuals.interactivebrokers.com/en/trading/orders/iceberg.php?ib_entity=llc i want to buy 5000, display 200 and am the first in line. Is the 4800 hidden part still first in line or is it handled as a hidden order and others with visible orders come first? Also whats has proven to be the best orderkind for selling at the open for Nasdaq stocks. Market on open gives just monster slippage because it is executed when there is a large number of other market orders that empty the book in that very second. If i do anymore testing with MOO i will go broke. I put them in more than 30 minutes before the open so thas not the problem.
Lets asume this. In premarket i place a hidden sell order at 65.50 on island. Orderbook shows 65.20 / 65.90. My order is invisible. Will smart routing find my order now? Or could it be that the market moves to 70 without me getting filled if no one uses island for routing?
On your 5000 share order, your 200 will have priority over any visible orders that come after. Visible liquidity that is posted after your "iceberg" order will have priority over the hidden portion.
Yes to the latter question, unless you allow IB SMART to re-route your order to the best bid, once it your order becomes marketable.
Thanks But i meant if other peoples smart routing will find my hidden order, route to island and hit my ask. If i want to sell and am the best ask but hidden, their smart routing will route to the next best visible ask not necessary on island and miss my offer. So hidden/iceberg orders have pros and cons i guess. It would be best if iceberg orders resubmit the visible portion after it got filled till complete order is filled. Buy 100.000 but only show 200. If 200 got filled put in next 200 and so on. Can someone build me such a tool I must be out there already.