Market on Close order for a small trader (under 5000 shares)

Discussion in 'Order Execution' started by seasideheights, May 4, 2005.

  1. Is there any reason for a trader who trades 5,000 shares & under to ever use a market on close order? What logic would there be to using it? thanks
  2. Dustin


    When there is a large imbalance on the stock due to news or an index rebalance then some guys will get a position near the close in the direction of the imbalance. Then put in an offsetting MOC order hoping to close out the trade on a nice MOC print. Big examples would be AOL when added to the S&P in the late 90's for a $10 profit and GS a few years ago for $5. The good ones are few and far between these days.
  3. alanm


    And so heavily faded that they often end up moving in the wrong direction on the closing print :(

    Maybe the key is to be part of the ones that nobody cares about (i.e. the smaller ones), and make every penny you can on your entry?
  4. The logic for the trade is that you can enter or exit with good size at that exact print. MOC is MOC, no slippage. (theoretically)
  5. What time do you have to enter in the MOC order for it to be valid? meaning doesnt it have to be entered in 20 min before the close, or can you enter a moc at any time?

  6. mnx


    that depends entirely on what market you are trading...

  7. Sorry i am refering to NYSE