Market Order

Discussion in 'Order Execution' started by chiefraven, Nov 26, 2005.

  1. As a beginner, i'm only concentrating on getting in and out of trades with NX orders right now. However, i was wondering if anyone could explain why would anyone want to use market order as opposed to just nxing out of or into a trade? Also, should i worry about practicing limit orders right now? I'm only trading with 100 shares right now so obviously i dont have to power to influence a lot of the buyers/sellers if i do place a limit order anyway.

    Finally, I was wondering if someone could explain when they would use a certain order as opposed to others. I mean i know when you make a market order you are getting the price when your order reaches the specialist, but why would someone do this instead of nx, when they can see the offer and bid prices themselves on the tape and act accordingly, isn't that safer and more economical? And what's this i hear about how market order can improve the price?

    Anyway, any advice on this topic are welcomed.
  2. you can only NX 1000 shares each way every 30 seconds. sometimes your NX is wasted or your position is larger than 1000 shares.

    other times there is nothing to NX and ECN's are trading waaaay away from the market.
  3. what do you mean sometimes your nx is wasted?

    Also, what do you mean sometimes there might not be anything to nx? and that the ecns are trading too much away from the market?

    i mean if the bid/price suddenly gaps up from the previous quote, and if you nx at this point, yes, you would get a less desired price, but if you use market order, wouldn't you still get it at around the same undesired price?

    Lastly, how come i'll see there is 400 shares being offer on the tape like


    and then after that somebody bought that 400 shares.... changing the next quote's bid/price to

    1x1 meaning 400 shares were bought off

    how come it doesn't show 1x0 meaning
    400 shares were bought, instead of showing 1x1....... doesn't that confuse some people 'cuz it technically still represents that there is still 100 shares left on the offer.
  4. bellman


    sorry, newbie here. i almost always enter limit orders. what is an 'nx' order?

  5. joema


    one can olny Nx 1000 shares every 30 secs?

    so if i send 2 orders one by one, each buying 1000 shares, only the first one will get Nx?

    what happen if my order don't get nx after 30 secs?

  6. did you guys pass your Series 7 exams? im pretty sure they had a whole page or two on NX's.

    you can only NX 1000 shares max in the same stock on the same side every 30 seconds.

    example.) you buy NX 1000 shares of WMT at 9:30:00, and then you sell NX 500 shares of WMT at 9:30:01. you cannot buy NX WMT until 9:30:30 and you cannot sell NX WMT until 9:30:31.

    but if you want to sell your remaining 500 shares of WMT before 9:30:31, you either have to market out or hit the ECN's. most trading platforms will not let you NX out until the 30 seconds is up.

    you can only NX when there is more than 100 shares showing on the bid/ask. so if the bid/ask is 1 X 1, you cant NX from either side.

    if you guys are in a training program at some prop firm, you should fire your trainers and find a new training program asap cuz this is def. something all trainers should explain on day 1. if you are trading on your own, i hope this answers your questions.
  7. reg


    The second order automatically becomes a regular limit order.
  8. actually monsitat you're wrong it's 1099 shares not 1000 shares on nx and i still find hit ecn's on fat nyse stocks much faster. plus if i hit the bid or ask on inet 'm getting .0009 rebate which is nice
  9. rcj


  10. i read the transcript with bright and it was very informative. so instead of using nx to get an instant fill bright uses bid minus 2 cents to insure #1 he gets a fill period and #2 many times its better than the bid vs using nx were the best you'll ever get is the bid and at times even miss the trade and have to chase it lower. so its basically like using a nasdaq ecn at bid minus 2 cents were many times you get screwed and get the bid minus the 2 cents were with the nyse putting it bid minus 2 cents doesn't hurt you becasue the specialist will give you the best fill and many times aprice improvement
    #10     Nov 28, 2005