I know NYSE Direct + is good for 1,099 shares and it does not function unless there is at lest 200 size on the NYSE quote. Question... If the bid is 200 shares and I send an order to sell 1000 shares. Will I get 1000 shares or 200 shares? If it is 200 shares is there a way to keep the balance out of the specialist book so cancelling is not an issue?
just send him 200 then. my reserve size is always a k, so I absolutely love nx. I can get my first k there from him fast, and then do my other 3k market, i can save 200 bux at least with it. CAn't live without it.
I for one, can not stand NX. It has cost me thousands of dollars since it's inception. Here is why. Let's say Im short 5,000 of XYZ. ANd there is a 50,000 ahsre on the offer stepping down. A market short, even. I will put my buy stop at the offer...where the szie is. Used to be, before NX came around, the specialist will usually not let a 100 share buy order uptick the stock to the offer. He will print it at the last price (a downtick) or even fill it on a downtick if there is a big seller. But he has no control over NX if there is a market seller...he has to show that size - thus, enable NX trades. If there is more than 100 shares at the offer, any mook can NX a buy order and uptick the stock to that size (offer price) and trigger my buy stop. So I get stopped out and the stock goes down another $100000 right after I get stopped out!!! So now I put my stop at penny above the size. The problem with this tactic is that once that size gets lifted,, my buy stop will get filled 50 cents higher. So, for me, NX is a losing proposition either way. If you're trading under 1000 shares, I suppose NX might be a useful tool. Same goes for when you are long and there is a huge bid stepping up and you put your sell stop at the bid.
So now are all the institutions going to start using ARCA and thus use the hidden order feature? Show 1000 for sale with 50K in reserve? Not sure if I like the idea of that. Sounds too much like nasdaq trading to me. Have to see how this ARCA thing plays out I guess... Leland
I dislike Nx, it's a fase sense of security. It only works when the Spec wants to unload. It's like hitting an ARCA with reserve orders, when I get filled he has plenty more to sell. If I don't get filled the stock keeps going.
I have seen it repeatedly written that one cannot cancel an electronically placed order. Does that mean that an order that does not get filled and gets placed on the book can not be cancelled? And surely this does not apply to limit orders. Im confused. (not surprising). Also, my friend at a different firm claims that the thirty second delay between placing successive NX orders not only applies to him, but the ENTIRE FIRM. Can this be true????
DOT orders can be cancelled, but not electronically. it is not cancelled at the push of a button. Entering 'cancel' notifies the specialist of your intent to cancel your order. Sometimes the result is immediate (as if he has set his DOT machine up to allow it). He has at least a minute before he has to do anything about it, maybe two (have never really gotten a straight answer on this one). NX orders go to the book like plain old DOT orders if the bid AND/OR offer size is 1. Apparently they cease to be 'ecn' orders in that case. If he feels like it, he can cancel your order. On NX orders, if there is stock at your price and you're first in line, you probably won't have time to cancel. However, if you get a partial fill you have a good chance of getting the 'out' on the balance if you're quick. It seems that since the unexecuted portion of the order goes to the book and is subject to the specialists normal handling of such orders on cancellation, I shouldn't notice a quicker cancel on the balance, but I do, sometimes. At least it seems that way... Hitting the 'cancel' button on DOT orders is like raising your hand in a very crowded classroom to ask a very stingy teacher for a bathroom pass. NX orders go to the book (like any other order) if the bid OR offer size is 1. In other words, the ecn ceases to exist in that case. Ever notice how often those one's show up? It seems to work hand in hand with 'pennying' to give the specialist more room to play his hand. Also, NX ceases to function 1 minute before the close. NX is not available if the quote is 'non firm,' whatever that means. Seems like most quotes are that way to me. Given that the probabilities are that a NX will become just another order on the book, it seems like one practical function of NX is to draw in orders, sort of like a 'loss leader.' So what is purportedly done for the benefit of the public is ultimately for the benefit of the practitioner. Some very limited PR: http://www.nyse.com/pdfs/nysedirect.pdf
When you send an order to NYSE Direct + and it does not get electronically filled, it then gets re-routed to the NYSE Specialist Book via DOT. To cancel this order you will have to wait for the specialist response to your request for a cancel.