why wouldn't you want to use bullets on naz stocks? i use bullets all the time on them. if you are a scalper/daytrader, by the time you get the uptick, you've lost the trade in most cases. the previous post is not accurate.
If you're trading a thick Naz it's not worth the $25 per bullett commission (or whatever your firm charges). If the stock has good volume it's not going to downtick indefinitely. There will almost always be an uptick in a reasonable amount of time before the trade moves away from you. You just have to be ready and quick on your hot keys to take advantage.
for most firms, bullets cost about 1.5 cents per share if not less. if you had to wait for an uptick and the stock already fell 10 cents, wouldn't it make it worth it?? on 10k shrs, i believe its $850. that's a day's pay for most people. i do that all day long, at least i try to.
One thing a lot of traders don't understand is the difference in the rules between NASDAQ and Listed On NASDAQ it requires an Upbid to get short. A stock can be at 45.28 by 45.29 5 x 5 500 go off at 45.28 so that the new bid is now 45.16 by 45.22 2x5 The last print was 45.28 but technically on NASDAQ an upbid is 45.17 which is actually a DOWNTICK as it ticks down but is higher than the bid. So they can get short on a downtick but an up bid if the trading software recognized the difference between NASDAQ and listed and goes by the rules. Now on Listed with same picture 45.28 by 45.29 5 x 5 500 go off at 45.28 so that the new bid is now 45.16 by 45.22 2x5 That last print was 45.28 so only shorts can enter at 45.29 Makes it much harder to short. I'm willing to pay an extra .025 a share to get short and make .50 than never get in. Robert
robert, that's exactly what i'm saying. the cost of a bullet is absolutely worth it unless you are only capable of making .01 a share on the trade.
That's why I referred to Listeds when using bulletts the majority of the time. It's much easier to short Naz stocks without paying for the bullet if they have good volume.
Thanks for all the input. Robert, great explanation of the difference between naz and listed. However, my firm does not have bullets, so I am force to create one. Today I missed 15 cents on a short of 5000 shares so I think it is worth it to create a bullet. Best way to go about it is another thing though. Nitro thanks for the thread
I pay $11 per 1000 shares for bullets and could not trade nasdaq stocks or nyse's without them. When you're trading volume or size they ARE necessary. There's no waiting for anything (Seanote), if the spoos or ndx start to tank you just missed the move. Obviously this is true for stocks that are tending to lead the futures as well. dos pennies. Shorting naz is just as risky as getting long, didn't understand that statement........