Lousy INET fills

Discussion in 'Order Execution' started by Farside, Jun 23, 2005.

  1. Farside


    Did anyone else get lousy fills today, either with INET or through other venues? I was getting +/- .04, .05 on BRCM, even when they were showing liquidity at the inside market. What a bunch of crap!
  2. nitro


    INET fills were instantenous here, but I was sending limit orders on MSFT.

  3. Farside


    Yeah, I've been using market orders (I should know better), but I've been getting good fills on high volume stocks like EBAY. It just seemed like my orders were being held for like 5 seconds today. Reminded me of market maker games from the past. I'm gonna start using limit orders all the time. I just thought it shouldn't be necessary in INET (I'm new to daytrading, live and learn :mad: ).
  4. EricP


    You might want to verify with your broker to find out if your INET orders are being externally routed. If they ARE, then even if INET does not have a posted matching order to fill your order at the inside, they will route it out to the market participants at the inside price to get you the fill. However, if your order is NOT being externally routed by INET, then they will fill the order internally against their INET book, even if this is quite a distance away from the inside market.

    In summary, just check with your broker to find out if your INET limit orders are set up for external routing. If they are not set this way, then only send marketable orders to INET when they are at the inside price, otherwise, use an ECN that has external routing capability, like ARCA, etc (again, verify with your broker which ECN's have auto-routing enabled by default for their firm).


    P.S. I placed marketable orders all day long on BRCM through INET and had no problems.
  5. Farside,

    You think you are using market orders on INET, but there is no such thing. Your broker simulates a market order by submitting a marketable limit order, and by repricing it in the event that it does not execute. If there is a bug or flaw in your broker's algorithm for pricing and repricing, this could delay your orders a little bit or even quite a lot. Perhaps this is the problem.

    Who is your broker?
  6. Farside


    EricP - Thanks for your help, I was able to talk to my broker, and get some insight into the order process.

    I am using Cybertrader, and I have been satisfied with them up until today (I'm losing money so far, but not their fault!)

    JimRockford, Thank you also for your help, I looked at my execution detail, and I'm going to allow their algorithm (CyberExchange) to choose the venue. What was happening is I had selected INET, then ARCA, then Brut for execution, and it submits the order to each in succession. If I let their platform do it, it should send it to the best price/available size (I hope).

    Again, Thank You both for your help! :)