Hi All, this is from IB website: "An odd lot order to OPEN a new position may only be sent to NYSE or Amex as part of a basket order..." Anyone know what is the reason? Thanks in advance, Jaime
The exchanges give special handling to odd lot orders. Some customers break their larger round lot orders down into odd lots in order to gain an unfair advantage. The exchanges require brokers to police this activity and to prevent it, otherwise, the broker gets disciplined by the exchange. IB has imposed various restrictions, from time to time, in an effort to block the abusers, so that IB will not be punished by the exchanges.
Can you explain which type of unfair advantage will get odd lot? I am always selling in my regular job something for 49, 99 or 199, I prefer such numbers a lot. Thanks.