I havent trade Nasdaq for a while, I wasnt aware that Arca was routing out on otc. Btw Pacific exchange is Arca. On nyse hibrid, are LRP's just a tool for specialists and other guys at the floor to eat us electronic traders alive?
Good idea Steve. I did just that. Here is the link to know all about LRP. http://www.nyse.com/pdfs/hm_booklet_Cp_5.pdf
the good thing about LRP is that they'll only come into effect in very fast markets, it has to be a fast market to hit the LRP since it refreshes every 30 seconds, but if they are hit and the market goes to full auction all electronic traders are toast...
Hi, I am glad you understand LRP aspects. No matter how many times I read that nyse web page, I don't get it... Just what is lrp(I know what it stands for)? And why do you say that electronic traders are toast when LRP is in effect? If what you are saying is correct, then that means we can't trade the news anymore:eek: ?
ok, here´s what I understood, basically an lrp is a point set uo to prevent very abrupt movements in the stock. lets say a stocks lrp is set to 50 cents. this will refresh every 30 seconds, so basically it would only come into effect if the stock moves 50 cents either way in less than 30 seconds. It´s suppossed to go on only on fast markets. The problem is that once LRP is hit, direct+ goes offline for a few seconds and the stock trades only on auction mode, so the guys at the floor have a clear advantage over electronic traders in this moments. It would only last for a few seconds, but that´s all it takes to do a lot of damage.
Wouldn't it just go from hybrid back to the way it is now? have any lrps been hit yet? axp repoted today during market hours.