Executions quality of hidden orders on Island

Discussion in 'Order Execution' started by Option Trader, Dec 13, 2007.

  1. If I place a hidden order, I know I won't be first in line, but will I at least get a fill before the next lower price if the counterparty would place a typical smart routed order?

    Also, does hidden mean totally hidden, or does it still "impact" the bid/ask.

    Any input would be appreciated.
  2. Anyone?
  3. if the next best price is an other ecn, and the smart router only routes to destinations that are shown on the bid/ask, the smart router can bypass the hidden order. thus it depends on the smart router. most smart routers probably only route to shown destinations imo.

    hidden means totally hidden.
  4. Thank you.

    I think I'll use an order trigger instead.
  5. (this is more general as the above poster answered you question)

    Depends how much volume the stock you are trading does, and what is normal on the L2. I would suggest considering these factors before placing an order to determine the quality of fill.

    For instance, if your trading something that does a lot of volume, showing your full lot is probably going to be better, as a lot of the time price gravitates to size. If your trading something that has more of a spread and does less volume, your better off using a dark pool or discretionary order. Most programs and people i know that are daytrading are pretty observant, and if they see 100 T on the TAS and saw no NSDQ on the L2, they are going to avoid hitting that price or shave you.

    Arca discretionary can be pretty good although it removes liquidity (if that is even a factor for you) You can set it to buy/sell a limit price, and it will not display on L2, but if someone bids/offers that price, it will hit them instantly.
  6. Thank you.
    But I tried ARCA hidden, and it doesn't seem to get priority after trying. It seems they hold the order at IB, and my best guess is that a sell order will go through once the bid rises to the sell price.

    Are you saying from your personal experience otherwise?
  7. Bob111


  8. You said a mouth full. If one flashes 100 shares and hides the rest, then it's your understanding the order will get priority?
    It makes sense; I hope one can hide totally the rest of the order from MM's etc, but would imagine that would only be possible if the broker would hold the order??