Discussion in 'Trading' started by z32000, May 11, 2007.
how are futures more fair over stocks?
i read that unlike stocks where execution is based on size of the order, futures orders are executed on a first come, first served basis....and the market maker isn't working against you.
The Market Maker is *never* working "against you". You're confusing Specialist with Market Maker.
In any case, just don't trade NYSE stocks if the specialist bothers you. Anything on NASDAQ or an ECN should be fine. I'm certain NASDAQ is price/time priority, and I'd imagine most ECNs (if not all) are too.
Even futures markets have differing allocation algorithms. Some bond futures have a "modified pro rata" algorithm which rewards the traders showing the biggest size.
Trade matching algorithms has more to do with markets appeasing market makers than it does "futures" vs "equities".
Not ALL futures are executed on a first come, first served basis!
NYSE execution is electronic. The specialist cannot trade against you anymore, nor would he have any benefit in doing so as he now has to expose himself to too much risk. He can't see the floor broker order book or our stop orders. He is subject to the same rules for trading as we all are and can only intervene and match orders when there is a major price spike.
Please see this thread entitled 'Futures or Stocks"