Who does the bust? The exchange or the ECN? I've never been busted by the exchage because of an ECN order a dollar away from the market. I don't think the exchanges care about the ECN's. Do the ECN's do the bust or something?
"Who does the bust? The exchange or the ECN? I've never been busted by the exchage because of an ECN order a dollar away from the market. I don't think the exchanges care about the ECN's. Do the ECN's do the bust or something" isld does the bust.i have got a few of these fills by isld dummies hitting wrong bid.99% get busted.and if you put a bunch of bids out there the one that is really tanking and hits you takes any profit that you may make.not worth the hassle.
I totally agree. Interesting how that 1% who don't get busted always happen to be the same buddies and never the little guys. I have written to the crooks at Island about that every time they busted one of my trades and never received any response. Qui tacet consentire videtur.
Note, orders out of the money don't get busted, unless they are filled so, executions out of the market will get busted for the most part, orders that cross markets usually get kicked back unless you have override set for direct access, but for retail, rarely can you ever cross markets.
i tade island a lot. when the futres start to turn u can get a nice fill on island when the specialist is holding the stock and not doing any prints. you have to be extremely fast. when i first started using island and trying to develope speed i hit a few bids and took a few offers a point or more away from the market and i called the order desk and they will not break the trades. i heard they are supposed for a point or more but i think it depends on who you get on the phone but i have never gotten a trade busted and i have tried several times. a trader in my office burned an island guy for a $.90 and island called him and broke the trade. the guy next to me, a few weeks ago, bought goldman 4 points higher and they wouldnt break the trade. they said that was the market and he got the best offer.
you're better off trying to trend follow than cross market spread. fills are never guaranteed, when there's a Specialist involved. they themselves are cross market Arb'ing, so how's you to get inbetween them and that dollar on the floor?