routing orders

Hi i'm new

What are the advantages/disadvantages of putting orders through ECNs, REDI plus, thru a trade desk, calling down to the trading floor?


I heard a trader say he prefers redi plus to ecns but he would like access to a trade desk or be able to call down to the floor?


isnt it all the same?

 

You must first know the difference between listed stocks and OTC (over-the-counter)

Listed stocks traditionally traded on exchange floors - calling the order down. These are stocks with 3 or less symbols. (They can be traded on ECNs or with market makers as well.)

OTC stocks have more than 3 letters. These do not have a centralized exchange. ECNs and market makers are the tools for execution. ECNs display orders and mtch them electronically. Market Makers trade to make money.

 

is redi plus just for listed stocks?

is there an advantage to calling in trades to the floor?

 

Redi-plus is just a front-end to route orders to the ECN's, Nasdaq and the Exchanges.

 

The only reason to call a floor broker on the NYSE is if you have a large order.