How do you get filled on NYSE stocks?

Discussion in 'Order Execution' started by listedguru, Jan 8, 2004.


  1. We never use NX (a Specialists "ploy" at times)...we simply place the order above the offering price and by doing so, we can be filled on the next print most of the time...or we get price improvement. Larger size helps get better fills as well.

    Don
     
    #11     Jan 8, 2004
  2. hayman

    hayman

    "Larger size helps get better fills as well."

    I strongly disagree. Larger size tends to move the bid/ask further in the direction of the order, and encourages front-running (aka, "price improvement").
     
    #12     Jan 8, 2004
  3. I respectfully have to add that the long time adage of "price moves to size" is still alive and well, since brokers and traders don't have to show size at all. Both with "held" orders, and with such things as 'rediReserve' we are all able to simply show a portion of our share size.

    I do agree, that there is some "bluffing" going on in certain stocks, and if I can get away with "showing" a bid of 20,000 shares a few pennies below the real bid, just so the stock will go up a nickel....to take my offer out....(well, then, you can take it from there)....bluffing may be done at times, but I think that with the NYOB, we see a much higher percentage of real orders, and the price moving in that direction...if only for a quick print.

    For most trading purposes, the 1,000 share orders are fine, however.

    All the best...

    Don
     
    #13     Jan 9, 2004
  4. alanm

    alanm

    Quote from Don Bright:
    I do agree, that there is some "bluffing" going on in certain stocks, and if I can get away with "showing" a bid of 20,000 shares a few pennies below the real bid, just so the stock will go up a nickel....to take my offer out....


    And you don't find that to be manipulative/deceptive according to the various regulations on the subject? If the spec suddenly gapped down, held your order, and you bought that 20K, would you be on the phone trying to get it busted?

    Not trying to be naive, just trying to get a feeling for where the line is between trading and market manipulation, from a regulatory standpoint.
     
    #14     Jan 13, 2004
  5. market orders on the NYSE ?

    ok ... maybe I am off in my terminology here

    but the example that I saw yesterday afternoon

    was someone using INSTINET , ISLAND , ARCA

    simultaneously to knock down the NBBO offering price

    in NEM until they went poof and a block of shares went near the lows late in the day
     
    #15     Jan 13, 2004
  6. There's nothing wrong with putting in an order to bully or scare the specialist or market place in general. After all, why you place an order isn't a data entry requirement. But if it's hit, it's a valid order.
     
    #16     Jan 13, 2004
  7. vikana

    vikana Moderator

    Enter on limit + 5 cents (for longs), where the limit is set to the last trade. Works most of the time.
     
    #17     Jan 13, 2004
  8. Simple "risk reward" all of my orders are real, with real money behind them. If I choose to "make markets" (enveloping), then that is my choice....I relish in the fact that I provide liquidity to the marketplace....and am not simply one of those people who devilishly try to scam money from it.

    Don
     
    #18     Jan 14, 2004