Even lots (100's) or not?

Discussion in 'Retail Brokers' started by saxon, Feb 18, 2002.

  1. saxon


    Got a quick question before I enter my first IB trades tomorrow.

    I want to buy 10 different stocks, dividing my capital 10% in each; but that works out to order sizes like 212 shares, 378, 443, etc.

    My question is this: Do you think I would be better off in the long run to enter BEST, LIMIT orders of even 100-lots (better in terms of getting filled at the price I want)...or can the system fill a limit order for 319 shares about as easily as it can one for 300 shares?

    I know it depends on the stock, but...on average, in your experience...is there a meaningful difference?

  2. My opinion ---Since you will be entering your first trades tomorrow be prepared for some mistakes, many questions and some confusion so why don't you do yourself a favor and round off to lowest whole lots in the from of 100's 200's and 300's etc. Forgot everything I said if you are into confusion, panic and extra costs.
  3. Eldredge


    I agree with Shortee, only I might even do 1/10 size until everything is flowing.

    I enter odd lots using BEST limit orders. The even 100's part gets filled very quickly, the odd part often takes a little longer, and sometimes doesn't get filled. This is with large cap liquid stocks (almost all NAS). Good luck.
  4. alanm


    Odd lots don't seem to be as big an issue any more for NASDAQ stocks, especially the ones that are very liquid where Island and ARCA (which do not have odd-lot restrictions, and therefore probably handle the bulk of that volume) are usually at the inside market.

    Be aware that there is currently a restriction at IB for odd-lots (less than 100 shares) of exchange-listed (NYSE/AMEX) stocks. You cannot enter an order to open a new position for less than 100 shares. 129 shares is OK, just not 29.

    Nothing wrong with keeping some powder (cash) dry just in case, either :)
  5. Please no odd lots. Ever.

    Since it is your first day with IB, why not pick one thing and do 100 at a time.

    Doing odd lots as a trader is like being a professional gambler and playing slots b/c you can't afford the tables. Amateur.

    'nuff said
  6. Miki


    I can only speak for myself, but I think that most traders dislike odd lots – placing an order for 100 shares and getting filled on 9 can be very, very annoying.

    But, if you are a newbie it wouldn’t do you much harm if you mess up 20 shares – it certainly might if you mess up 200 shares.

    Once you get used to IB software and trading activity as a whole – increase the number of your shares.

    Good luck and may the farce (this word is used intentionally) be with you
  7. GOOD LUCK!!:D
  8. Logically, odd lots lead to increased fill times, and sometimes that leads to dramatically increased slippage. But if your timeframe is days (as mine is), not hours, I don't find that a big issue.

    Why do so many believe odd lots denote an amateur trader? And why the heck would that matter? It's the bottom line that counts, and if you can squeeze that much more exposure from your capital without an adverse impact (like slippage), then so much the better.
  9. I just don't see the point in trading odd lots, unless you happen to trade BRK.
  10. alanm


    If you are doing basket trades for index/sector arbitrage with anything less than a huge amount of money, I'd expect that you would always be doing mixed-lot trades.

    As traders, we only hate odd lots because of their lesser liquidity, or because of restrictions or additional charges put on them by brokerages. In a stock like QQQ, on Island, I routinely get multiple mixed-lot fills, usually within a second. Doesn't hurt at all.
    #10     Feb 19, 2002