If you look at things such as QQQ, SPY and many stocks you'll see a spike at 8am. The last 2 days I had orders out (granted not sitting at ARCA or NASDAQ) but through a smart order router provided by our broker. Both days price traded through and past my limit order during this spike without getting any fills. I can go to a tick chart and see every price movement but my orders were not executed until much later when price came back to this level. Is there something else going on at 8am I'm not aware of or does the fact that my order "may" not be sitting directly at the exchange have to do with the execution issue? I'm getting direct market access added to our account today and will be trying again tomorrow sitting at the exchange. Just wondering if anyone knows something I don't and why the price fluctuates at this time. I assumed it had to do with the pre-market opening for many other brokers....
Thanks for the reply TrailerParkTed. That's what I'm wondering is why would we not get filled, what is actually happening?
Usually those are late reported dark pool trades that were traded hours ago like the previous day. Especially when it’s exactly at 8am every day then it’s a mechanical late trade reporting/summary, not real-time trades. But some cases may be different and you’d have to analyze full details including which exchange executed the trade and what were the trade flags/conditions. Trade conditions contain more specific information.
I suggest reading study materials for the series 57 and other licenses like that.. even if you have been trading for ages you will probably learn something
Thanks Guru, I was hoping that wasn't the case. Going to investigate closer tomorrow morning trying a few different routes, my assumption is either something like you mentioned is going on or the routing we are using is being internalized and not routing anywhere. For example see attached image for live test...
I can confirm, they are late prints from premarket trading between 4am and 8am. The paid orderflow ones for example, that were executed by citadel vs. client at brokerage allowing early premarket trading (e.g. Webull).
I do trade in premarket often as i am european based (4am ET is 10am here). Imho not 8am but 7am ET is the important time to watch. Because: - News are often released 7:00 - Some brokers allow premarket trading starting at 7am - major moves happen at 7am similar to 9:30. - not sure, but i think additional ECNs open at 7am, such as direct edge.
%% [1] That; + same reason a smaller cap stock/etf,spikes easier=less volume than regular hours. [2]And that's the reason Realtic used to call that ''irregular hours'' [2b] I remember one week [7day chart so actually more than 5 days]on QQQ 30 minute charts/premarket almost never had any volume, except one time. So that further confirmed its ''irregular hours'' WSJ may publish SPY moves post market[past 3:00 cst/ ]almost never any good moves, or good volume/compared to normal hours