I didn't think it was surprising, just interesting. I agree, I'm very close to the CBOE and on very fast lines, yet I can't come anywhere near getting it. I assume that doing it from another account would be illegal, no? - The New Guy
How do you know 6.00 ask "disappears"? You just have a better ask for that particular exchange. Anything is more expensive is just not visible to you. That would be my guess based on what you've said so far... And 6.00 "appears" again after you cancel your order, since it becomes the lowest once again... Now, please tell us what type of screen exactly you're looking at. I have to assume "Level 2 for options/market depth" on a retail account... This would confirm my explanation. Thanks
It definately dissappears (well, sometimes it does). On a level 2 screen you can see the depth for at least a dollar most of the time. Sometimes they leave it at the same price, and sometimes (If I offer more than .1 better than theirs) they move their order up to just behind mine. Anyway, ANY order that is out there, I'll be able to see. If I don't see it, it's not an active order. - The New Guy
That screen of yours shows only the highest and lowest per each exchange. Where did you get the idea that you will be able to see all of the "active orders"?
Dang yo, I didn't know that. I assumed it was the same as it is for equities... Thanks! - The New Guy
Actually, it's pretty much the same for equities. You just see offers/asks from each MM/IB instead of a different exchange... If you look at ask or offer list for a particular stock, you will see a single MM listed only once...
Very interesting... I had assumed that PSE, CBO, ASE and so on were acting similarly to ARCA, Instinet et al. Now that I think about it, what you're saying makes perfect sense. Now I gotta figure out how this impacts me... Thanks, - The New Guy
another thing to note is that wherever your order is routed, if it is an exchange, the market makers will be obligated to meet a fill at that price for a minimum number of contracts. so if you specify say the CBOE and place an offer to sell one contract at 5.90. then an order to buy comes in for ten contracts the MMs will be obliged to fill the ten at that price.
I don't mean to be a wet blanket... ...but the practice you describe is illegal and, if you somehow managed to get executed on your buy, you and/or your executing broker would get fined by the exchange and probably get your trade busted.