having worked in the pits in chicago...you can't tell me there isn't a little collusion going on at these post....i've seen it first hand in the futures pits.....if the specialist needs a down tick when the futures are screaming it's funny how lucky those specialist are to have a shake out!!!!!! and then like magic after the futures are just petering out presto, there's a nice little gap up!!!! i don't blame them they have yacht payments to make...those things aren't cheap ya know.
We all know that there are many "advantages" of being on the floor, as a Specialist or a trader, and I really think that the job the Specialists do is outstanding, and sure, they have some edges, but they have a rough job (especially since so many have become simple employees of bigger firms). don
Also to add,when placing an order through the NYSE DOT system,orders are filled on a price/time priority;but,even though you may have priority on the specialist's book,you may be on parity with orders in the crowd.So it is up to the specialist to decide how to allocate shares among his book and orders in the crowd.Personally,i think the Nasdaq is much better place to trade.Orders don't take up to 90 seconds to fill,especially when you use Supersoes(as long as there is a market maker on the inside) or an ECN,such as ISLD or ARCA.Quotes are updated immediately,and there is more volatility,hence more opportunity in Nasdaq.
We've had this discussion before, and I won't go into it, but just for the record, 98% of our profitable traders trade listed exclusively. I will admit that I like the "instant fills" on nasdaq stocks, it is just that if you can't read their direction as well, it doesn't matter how quickly you're getting filled. Anyone interested can see the Listed vs. Nasdaq discussion via search of the site. (just a note, our traders can trade whatever market they like). Don
Thanks for all of the responses. Don, do you have courses or manuals that focus on trading with specialists and interpreting NYSE time and sales (order flow/tape reading). One more question... Are specialists required to show the best bid/offer AND the size, or can they skew the inside market slightly to encourage interest on a specific side? Thanks.
(hate to sound like I'm "plugging" - but, we cover this very well during our 5 day training program)... Don
sure sounds like a plug to me! anyway, i've got a question for you guys. if i have a sell order of 1000 shares that is partially filled for 500 shares, am i guaranteed that the very next print will fill me the other 500 shares?
No, as soon as you are filled for any amount (even 100 shares), then you are put on "parity" with other offers of equal price. Often, you will get 100 shares of a 1000 share order (kiss of death), you may as well cancel and resubmit at a new price (I generally do that). Because if you do get the rest, you probably don't want it. (sorry for the "plug") Don
Hi Don, Thanks for the reply. Does this apply even if I had the 1000 share sell order at MARKET? Thanks!
Probably, it would depend on the size of the first bid you hit (if it were only a 100 shares, then yes). You would go to parity with other market orders at that time. Don't hold me to the exact details, this stuff changes, and I rely on our Specialist-types during school weeks. Don