Market-on-Open order at NYSE

Discussion in 'Order Execution' started by Markus_Koch, Dec 6, 2002.

  1. Hi!

    I tried to short SEI yesterday (Interactive Brokers). The stock traded at about 0.80 yesterday and the volume was at 300.000. I entered a MOO order at NYSE to short 5000 - the status indication in trader workstation was green at this time - about 10 minutes after the opening the status turned red an the order disappeared.

    Please, can anybody tell me what I did wrong. There was enough volume at the open to get filled. Is there an uptick rule for MOO orders at NYSE?

    Thanks in advance
  2. Most stocks under $5 can't be shorted. More than likely that was your problem.
  3. Correct...Under 5.00 can't be margined either
  4. Hi,
    thanks for your answer! No, I can short stocks below $5 with interactive brokers - I entered the order for SEI later with a limit price (=open price) and got filled.

  5. Really?

    How? Im very interested to learn how this was done...were you short against the box( meaning you had a long position as well) or were you hedged with a Bullet?
  6. No, there were no other positions in the account at this time. Today I shorted another stock at $1.27. The only difference is, you pay slightly higher margin.

    But back to the original problem, can you give me any references on how MOO orders are executed.(time, volume, ...)

  7. don bright has a long running thread about MOO..that's all he does can get all the info you need there
  8. Technically you shouldn't be able to. Shorts require margin and under $5 has no margin capabilities. Might have been a glitch in IB's software or they haven't updated it.
  9. Actually they are LOO

    Limit on Open

    not MOO Market on Open

  10. close enough for government work...and i too want to know how they are doing these orders....and more to the point why? The margin requirement on a short like this would be $5.00 PER SHARE so on a 5000 share order of an .81 stock his required margin would be 25k!!!! who would want to tie up that much BP for and 81 cent stock ?
    #10     Dec 6, 2002