Typically, on average, how long does it take to execute a trade in a somewhat volatile stock? My current online broker does it in about 10 seconds--would upgrading to an EDAT be cost efficient? Thanks, Thunderbolt
Thunderbolt, Typically, on average, how long does it take to execute a trade in a somewhat volatile stock? My current online broker does it in about 10 seconds -- would upgrading to an EDAT be cost efficient? If I used an online broker I wouldn't trade somewhat volatile stocks! And I'm assuming you're talking about market orders? If so, both Realtick and CyberTrader take about 1 second maximum for Nasdaq, depending on the stock's liquidity (you didn't say anything about that last point, nor whether it's a listed or Nasdaq stock). Anyway, if you trade volatile, liquid stocks you really have no choice but to go EDAT. Otherwise 10 seconds can... 1) feel like a lifetime 2) cost you a fair chunk of change
Yeah, I'm talking about Nasdaq stocks. AMAT, BRCD, BRCM, VRSN, ect... 1 second, sweet! That saves me..... Thunderbolt
You should urgently research what fills you get. If you are filled by the MM your order is routed to, you will not get a good price or you will be filled when the market had moved unfavourable for you. moving to EDAT is always worth the effort.
That is why RealTick is so slow. If you are hitting the bid of an ECN with whom you have a direct connection it should seem instant or so fast you cannot perceive any delay. In that 1 second that your RealTick order is meandering to Chicago, other traders on a faster system are beating you to the bid/offer with which you are trying to trade. That one second seems like forever when your orders are not getting filled. RT is a big improvement from "on-line brokerages," but it is not for scalpers.