my 1 share execution

Discussion in 'Order Execution' started by billyjoerob, Jul 31, 2012.

  1. I put in a bid for 500 shares on a NYSE stock at 1c above bid and got filled on 1 share. Why would the bot/market maker/whoever sell me one share? Is 500 shares some sort of threshold for something?
  2. Maybe thats all the Floor specialist had in his inventory, he just had one share left over from some odd lot orders and decided to fill it so he can clear his sheet.
  3. Bob111


    i explained this many many's done purposely and the reason for it to force you to buy at ask. i see it everywhere,tens times a day on every stock i trade. you got 1(2-3-5) share-you got a partial execution. now if you stay on bid -the price might(and most of the time will) move away and typically you ended up paying spread and double commission. or just buy at ask with pretty much same outcome..not sure,if it's really hard to understand the idea behind such fill. just sit down and think about possible outcome(we suppose to do this every time we trade anyway) :)
  4. You haven't explained anything, but thanks for replying.
  5. Bob111


    ok..let me try one more time. i'll make it short ...

    to 'encourage' \ 'motivate' you to buy at ask
  6. I can't find a reference to this anywhere, so it may be wrong (for which I will be justifiably flamed mercilessly, no doubt) but anyway ...

    ... to define the Best Bid and Offer, I believe there must be a total of at least a round lot of shares (i.e. a total of at least 100 shares, even if coming from multiple different orders) at the level.

    If the above is correct, and you placed an order $0.01 above the bid...

    ... some other joker (or group of jokers, with orders together totalling less than a total of 100 shares) had resting limit orders below the ask. You couldn't see them as at each level they were for less than a total of 100 shares.

    Your order got matched with the joker with a 1 share limit sell order resting $0.01 above the bid ...

    ... but then again, all the above could be wrong. Let's see what others think ...

    = = = = = = = =
    EDIT: OK, found it here:

    "Interest will be quoted if it is equal to or greater than a round lot when the price point becomes the Exchange best bid and offer (“Exchange BBO”). "
    = = = = = = = =

    Why do people place 1 share limit orders? Because they are testing trading user interfaces, or an algo, or perhaps haven't a clue what they're doing and just saw some buttons they wanted to push? Who knows? Any of the above ...
  7. and what are you going to do with that one share? Most likely you will put in an order to sell 1 share, and someone else will get stuck with it, and that one share will just keep living in the computer for ever, until the stock splits 100 for one, and then it will become a round lot.
  8. Eric215


    This shit, along with sub penny bids/offers, has hit a nerve with me recently. Maybe it's because I also found out that two out of the four poker rooms that I play at, cheat. The rooms allow people (who pay them under the table of course) to buy in late when the tournament is down to the final two tables. I've noticed it a couple times and now it has been confirmed to me by a room manager. All I ask is for a level playing field. Are there any fing honest people left in the world?
  9. "Floor specialist"?

    What is this, 2005?
  10. Bob111


    then they testing it way too attached picture...that's about $350 in comish, if you trade thru something like scottrade and >$500, if you use ameritrade..couple days like this will put you out of this day trading business forever.. i think-that the idea. to kick you(and me,the retail guys) out...FOREVER.
    for a lot of firms out there-it doesn't cost them anything to sell you 1 share..but it does cost YOU a lot
    #10     Aug 2, 2012