Those annoying LSPD "traders"

Discussion in 'Order Execution' started by bungrider, Jun 25, 2002.

  1. anyone noticed that LSPD seems to cater to the last of the momentum traders??

    personally i find that whoever uses LSPD in some of the naz stocks i trade to be extremely annoying, but i have a bias against pegged orders, and that seems to be the only order type LSPD traders seem to use.

    ever notice that just about any naz stock will have an after hours bid for 0.01 from LSPD? do they really think anyone will sell to them at that price? seems totally like a lightspeed kinda thing to do...besides, i don't think it's permitted to allow market orders in extended hours trading anyway, making the 0.01 bid beyond retarded....pointless at best...

    the really stupid thing about those 0.01 bids is that they are only for 100sh, and if somebody who didn't know any better decided to sell to LSPD at that price, the trade would net the seller $1.00 (100sh X 0.01). considering the fact that anyone dumb enough to sell to the LSPD schmuck at that price probably trades thru datek, etrade, schwab, etc - why would anyone pay a $10-15 ticket to net $1.00 on the sale??? apparently many LSPD traders lack brains. the upside is that by trading against them you might put the odds in your favor. at least that's been my experience. if LSPD shows up and pegs the bid, chances are the move is just about over.
  2. Is LSPD an ECN or a MM? Maybe it is just a black box that is programmed to be an automatic "Me too!!!" like some of the guys in my old office. Saves the thinking part of trading for other uses like figuring out what is for dinner.
  3. We must be all dumb if we use lspd. I scalp and I use LSPD and it is a advantage to me because I will use it to catch turns from the idiot who has a soes market out but the move is reversing. I must be dumb to use it for this purpose. LSPD is a nice tool to have in the toolbox.
  4. There's a reason for the 1 cent bid. I will not reveal it. I want you to do the research and figure it out.

    It will do you good to use your brain.
  5. if your scalping 1 stock, You can go to their website (similar to arca) and see what they are up to in each stock....they usually are cutting markets by .004......... Word is groups are starting to refuse to pay their obnoxious fee.....I love hitting him for odd lots.


    That 0.01 share bid is meaningless. If someone accidentally hits the bid on a sell order, he/she can call Market Ops and have the trade broken.
    On the subject of LSPD...most of the guys who trade exclusively with LSPD do so because of the "add liquidity" rebate. That is why you find LSPD all over the market in high float/cheap price stocks (WCOM, JDSU, SUNW). Some of these "traders" (term used jokingly) do nothing more than trade for pushes in these stocks and make money just from the add liquidity rebate.

  7. Dont they pay any sort of commission that eats into the rebate?

    So If I trade 200k WCOM for a push what will i make?
  8. If thats what people are doing, Trading is much sadder than I thought......
  9. SteveD


    I would guess they catch the tail end of some market orders. Someone sells at market for 1000 shares but that last 47 or 68 etc gets done at the .01. They just leave a line in the water at all times.
  10. VOLUME


    Stock777--I can't answer that question because I don't work there. I do know that if you buy on the bid (w/LSPD) and the stock goes south, you can flip to the offer (original price you paid) and sell (on LSPD) and somehow end up net profitable. truly is sad. However, SuperMontage is coming soon and these "traders" won't be able to pull that bullsh*t.:D
    #10     Jun 25, 2002