If your strategy is to trade the "high flyers" (NFLX, AMZN, GOOG, AAPL, etc), perhaps you can ask DirectEdge if they still accept odd lots orders from prop firms. At Team Trading, the prop traders (over 1000+) were trading odd lots, all day, everyday, as the firm's broker routed orders to DirectEdge, and it did not matter if the stocks were Nasdaq, AMEX, or NYSE. DirectEdge was an ECN at the time, and has since become the 4th largest exchange, so the rules may have changed. You may also want to contact the BATS exchange, or the best way is just to ask the prop firms directly if they allow for odd lots. You may find exceptions if a prop firm accepts odd lots for Nasdaq stocks, but it's doubtful on NYSE stocks. Of course, as a retail trader, you can place whatever size trade you want for any stock. The only exception I've noticed where you must trade in round lots even for retail is for the ETFs issued by "Holdrs", as described here: http://www.holdrs.com/holdrs/main/index.asp?Action=FAQ Best of luck...
I don't know for sure, but I don't think team trading is a broker dealer with licensed traders. I think they are retail traders, which would allow them to trade odd lots anyway. Again, "not sure." Don
Thanks ScalperJoe for the info. The problem here is the compliance officer of the firm dictate what allow and what not allow. I don't used Nasdag routing but the answered I keep hearing is ..it is Nasdag rules not firm rule so for you all compliance officers...what rule book do you follow regarding how the prop firm operate? what allow and what not allow? Direct Edge and Bats Exchanges have no problem dealing with Odd Lot..I can pull up NYSE odd lot rules..which is no longer differentiate between odd lot and standard lot.....but why is it a problem with Prop firm using odd lot....I would like to see the reference for Odd Lot Rule please point me to right place. Thank-You!
They did not require the traders to be licensed, and everyone was allowed to trade odd lots via the Orbis platform, but not for Sterling, where 100 share lot was minimum. It is unclear as to how the firm set up its master account(s) at their broker, Solaris Securities, as the traders were simply sub-account contractors of the private equity LLC. Team Trading is defunct, and Solaris has been EXPELLED by FINRA, go figure!
Don, please give us your 2cents on the Prop Firm Master/Sub account structure in an LLC which is NONE Registered? since you have been in this business for long time..can they pass the muster and produce enough "income-for-living" as advertised?
Send me a PM with a more detailed question - I will respond there, and you can decide what should or should not be posted on the main site, thanks. Don
The rules about odd-lot trading are surprising, it makes precise hedging much harder. If they don't want people to trade sub 100 lots, they should do a 100:1 reverse stock split and let people trade single units of a bigger stock.