Difficulty with buying certain low priced stocks at bid (e.g. CTIC)?

Discussion in 'Order Execution' started by Option Trader, Jun 2, 2009.

  1. I was trying to buy CTIC at bid, but it seems it's impossible, unless the ask price caves in on me.

    Is this a function of the broker I am using? Of the fact I am a retail trader and can't cut in front of others by a fraction of a penny? What is the issue here?
  2. Are there not any experienced & active retail stock traders that have survived?
  3. gimp570


    you could just pay the offer.....its only 1 penny spread
  4. On 30k shares, that's $300 more roundtrip--relative to the medium price, and I'd rather to open the trade up the $300 and not down the $300.
  5. gaj


    i don't know the actual reason for it.

    however, it happens on lots of cheapies, and i've found:

    -> some brokerages allow tenths of a penny on sub-$1 stocks ONLY.
    -> some brokerages don't allow tenths at *all*.

    it's pretty irritating to have a bid out there on a flat number, and watch as lots of shares go by at, instead of 1.75, 1.7501 or some such nonsense as that.

    BATS put out something last year that they were allowing tenths of a penny on sub-$1 stocks, but if your brokerage doesn't allow it first, the BATS routing won't do you any good.

    (EDIT: when there were more rebates offered, you'd see this as a more common occurrence...some sub-$1 stock would trade all day in huge amounts, but relatively capped, and nearly every trade would be a sub-penny trade)
  6. At the time you place your order at the bid, there is probably a large number of orders already waiting to get filled on the bid. Your order must wait in line behind all these orders before getting filled
  7. 71 million shares have traded today. The level 2 shows on a typical best bid/ask only about 100k shares, and there are times in the day it can sit there a long time. Hence, I think there is more to it than what you are saying.
  8. You can't shave pennies on stocks over a dollar. It's a function of the time you put your bid, the amount of size ahead of you on the ECN you used, and the ECN you choose.
  9. A&B) When my bid sits there a long time you would think I should move towards the front of the list; it doesnt seem to happen though. C) What do you mean by point C (which seems distinct from point B)? Let's say Thinkorswim routes me to NASDAQ, or if I choose ARCA (by placing the order as an extended hour trade, am I at a disadvantage?
  10. gaj


    NY - i've gotten filled on stocks where the price is shaved (lots of times) on stocks over a buck.

    whether or not it SHOULD happen is another story. but it definitely does happen, and i've seen it on time and sales a ton.
    #10     Jun 2, 2009