The platform I trade on now prohibits odd lot order entry except to close out an existing position. Odd lot orders to the specialist are absolutely prohibited under any circumstances so can only get out of odd and mixed lot trades on ECNs. These guys are serious about it too (the specialist that is). Felt the wrath of pissed off specialist a few weeks ago, and so to avoid any future problem with these dickheads any odd lot order to the specialist is out right rejected by our software. And by the way, order entry restrictions can be more serious then only allowing you to enter round lots!
I trade day in and day out only in odd lots!!! I average in most of the time & sell out the same way. I trade 50/60/70shares or even 150/250 shares in LEH,MER,SPY,QLD,SSO,UWM,TWM,UNG,BNI... etc. Occasionaly when I trade RTH (Retail holder's Spider) or Transport Holder Spider ( I can't recall the ticker),I get a reply that less than 100 share order not acceptable. IB is the best & $1 commision up to 200 shares($1ticket) is un beatable. common stocks odd lot should not be a problem .
Odd-lots get preferential fills. If you use odd-lot order predominantly to trade, you will get noticed. If you use odd-lot orders to invest in something, no one will care. And as I recall, odd-lot orders are also hugely more expensive to fill on ARCA than round lots.
The comment on Arca is true if you take liquidity. The other reason why odd lots are frowned upon is that they don't print on the exchanges if I recall.
I think it might be that certain specialist, ie Goldman (GS), BZH, are more intolerant than others. As I have said, I have occasionally traded odd-lots for years with no problems until this week. Since Nasdaq stocks don't have specialists...I will just avoid odd-lots for NYSE stocks.
that's what I meant. I will only trade odd-lots with Nasdaq from now on. Don't trade NYSE stocks enough for it to be worth the headache to deal with crap like this.