Put in my 65 cents after hours...I wanted to do "good till cancelled". The CBOE will not allow it...So I put it in for "day only".
I did not say that. I said without option market makers, the only "NBBO" would come from limit orders placed by customers which would be either much wider spreads in many cases no bids or offers at all. And then about my comment on fragmentation, it makes it very easy for internalization without giving a fill to the orders that helped create the NBBO. I do not think it is fair or equitable that if a market is 1.00 x 1.05 and I bid 1.02 for 50 calls, that a sell order can be sent to another option exchange and a MM can match my price and I do nothing. IMO, Having 16 option exchanges is not for the benefit of the public. It allows MM to make wider markets and post smaller size than their trading systems are willing to trade with, because of directed order flow, they can do that. They get first look and that allows them to match what might be the order where you put yourself at risk first.
IB does this very often, holding the order on their server and only releasing it when there is a bid/ask. And their excuse is the same: it's for price improvement. I dunno why they do this. They don't get paid unless the order is executed. Are they holding onto the order to be sent to MM because MM is paying them more for the orderflow? So that way they get paid and we traders supposedly get a better price from the MM. That's the only logical explanation that I can think of. But then what does the MM get if it has to pay to the broker for the orderflow on one hand and giving us a better price on the other hand?
Having many exchanges is fine. It's the fragmentation of them that's the problem. When an order is sent, it should be broadcasted to all of the exchanges simultaneously to look for a match and not just targeting a few exchanges at a time. That way the exchanges can truly compete for our order and give us the best price.
I would love to see the order broadcast to all exchanges...How it use to be, way back in the day. I would get silly fills by the Pacific Exchange. I was also charged something like $30. to $60. for the trade!! I am just saying, I would have liked to have seen my order go onto at least one (semi major) exchange, for a few minutes (for price discovery). If it gets filled...Fine, I am a happy camper. If not, it can be held by my broker for a later fill (plus possible price improvement). Yesterday the stock went up a bit toward the close of the market...I may have gotten a fill (or partial). I said may, I don't know...Only 3 fills that day for that option. Just looking for cash flow...
No way it was going to be filled in that underlying unless the market rolled you over (made it marketable) but GTFO of FIDO. I assume that they did it to protect the customer (illiquid series).
To me, I feel orders should never be held by the broker and instead should be sent to and stay in a system that is broadcast to all exchanges and is accessible by all exchanges when they have not been filled and then worked constantly by all of the exchanges until they are filled. Why should the broker hold the order? The broker's job is to introduce our orders to the market very much the same as an actress' agent. For their efforts, they earn a commission when our orders are filled. So it should be in their best interest to have the orders filled asap when the price of the market is a match. Still don't know why the broker would hold our orders and not to get them filled except they are in cohort with the MM's who are paying for the orderflow. This is why I always say PFOF's got to go!!
Repeating the same nonsense repeatedly doesn't make it correct. In the past I have presented numbers that shows with without POFL I would encounter an extra $500 in daily commission expense. e.g. $500which would be a substantial drawdown or $125,000 drawdown on a yearly basis. The zero commission model works for me. You are entitled to your beliefs but don't try to foist them on others.
So put me on Ignore. I have experienced otherwise. I have experienced better fills, better prices with brokers (at least supposedly) send orders directly to the exchanges. The loss in prices and opportunities which directly affects profitability is far more than $500 especially if you do a such high volume of trades that would result in a saving of $500??!! Either you are lying to troll or you got your numbers wrong.