On Open Nasdaq market

Discussion in 'Order Execution' started by TradeNYSE, Oct 28, 2007.

  1. If I place a market order to get filled on the open of a nasdaq stock, what price will I be filled on...whatever the inside offer is as soon as 9:30 rings?

    I know the opening price for a Nasd stock is essentially the first print after 9:30...but I was wondering if I was trading a thin stock and there was not a lot of liquidity, if I would be filled on the inside offer (even if it was a point or two (or more) out of the money.
     
  2. rwk

    rwk

    It is my understanding that if you dump your stock at market with enough size, you can theoretically drive the price to zero. In reality, bargain hunters will usually step in and prevent that from happening. Sometimes it doesn't take much size to move the price a dollar or two.
     
  3. Yes, maybe if you dumped 50% of the outstanding float...but I am talking about trading 2000-3000 shares.
     
  4. Anything thin, unless you are selling into a size bid that is showing, will get your silly butt kicked trying to sell 2-3000 at the open
     
  5. So would you suggest setting up a basket (for multiple stocks) and market buying maybe 5 minutes after the open?
     
  6. rayl

    rayl

    Personally I am afraid to trade NASDAQ w/o a limit... or any ECN for that matter. This area NYSE still has the edge.
     
  7. rwk

    rwk

    I agree completely. I trade both Nasdaq and NYSE, and MOO and LOO orders are o.k. on NYSE but lethal on Nasdaq. You have to bid or offer a little bit at a time looking for liquidity on Nasdaq. There are about 2 or 3 dozen stocks that have very good liquidity on Nasdaq.

    [rwk]