Say for example I put in a limit order to sell short 100 shrs XYZ stock trading on the NYSE. How does this appear on the specialists book ? Would he know I'm shorting or would it just appear as another out of market sell order for 100 shares . Thank you .
Your order would be marked as a short sell to the specialist. This is to ensure that your order only executes on an uptick. I also believe that short sells get last priority in terms of execution.