I feel stupid for asking this but...I'm using E signal and it's trading interface with IB. The orders can not be rounded to the nearest 100 share lots (a software error that esignal is working on) so orders placed from within esignal go out as odd lots. I'm trading listed and nasdaq stocks. I've been placing market orders through "smart routing". My method is hectic so I like the quickness of trading from within e signal. They are generally fairly high volume stocks. I know hundred share lots are prefered but am I paying too much for the odd lot fills?
You actually have an advantage trading odd lots. In listed your orders come directly from the specialist at the bid or offer no need to match. You have a much less likely chance of being screwed. The advantage is quite an edge. Thats why they do not allow proffesionals to send odd lot orders to NYSE. Send those 99's all day Good trading.
************************************ Thanks for the fast response! For once, being odd is a good thing. I feel so much better now.
If you're trading NYSE stocks through IB, note that there are restrictions. Generally speaking, odd lots with limit orders are not routed to NYSE. So you will lose that advantage. Whenever I trad an odd lot through smart it gets routed to ISLD or ARCA. Very annoying. "Orders to open a new position or add to an existing position for NYSE or Amex stocks that have a round lot and a partial odd lot component (e.g., 249 shares, 368 shares, etc.) will be routed as follows: If sent by the customer direct to NYSE or Amex, the round lot portion will be sent and the odd lot remainder will be rejected back to the customer at the time the round lot portion is executed. If sent using SMART routing, all market centers are eligible to receive the round lot portion of the order according to the normal SMART routing logic, but the odd lot remainder is not eligible to be sent to NYSE or Amex but instead will be sent to another market center." I've routed odd lot market orders to NYSE and it's worked, though I haven't done it lately.
Depending on who the broker is, if the order goes to the NYSE they can charge anywhere from 2-20 cents per share depending on if the specialist likes the broker routing or not. A 99 can cost 20 bucks in some instances.