It would serve the NYSE to think abit about this topic. It serves no purpose to split all the orders up by .01. Here's an idea: HOW ABOUT NICKEL INCREMENTS? Having nickel increments would increase the size of the bids and offers, and increase the confidence in getting decent executions by your average Joe. Then comes increased confidence in the market. But the NYSE is a bunch of dummies intent on destroying their exchange. Why else would you change a system that worked for so long? Vinny
I would agree, we all hate getting pennied to death. On the other hand this sound similar to something I remember seeing called teenies way back when (2 yrs ago). This bs penny system was created by the specialists and market makers because they had no way to steal orders with the old system. It cost them to much to get short or long. As far as the chance of switching back to higher increments who do you think will win us or them. I will give you a hint.........................................not us.
It's all a matter of perception. And trial and error. If you find the right specialists, they will often fill you right at the top or at the bottom (in your favor!). I love those trades where the tape reads 45.81 45.83 45.85 45.85 45.86 45.85 45.80 And my sell order gets filled right in that 45.86 print. Or what also happens a lot is something like 25.31 25.30 25.30 25.29 25.19 25.29 25.28 25.28 25.25 25.24 25.20 Where my limit buy order (25.21) gets filled in that 25.19 print. You just have to know which stocks to trade. And it's definitely not JNJ. PFE seems to be difficult as well. But its volatility is so low that people like us probably don't trade it too much anyway.
It occurs to me that the decimalization that was forced down everyone's throats 'for the good of the individual investor' was the NYSE's very carefully calculated way of taking the edge from screen traders, who had a chance of being 'electronic specialists' and thus gaining entre into the franchise (or monopoly) of the exchange. I suspect the Naz going to triple digit fractions was a parallel response on the part of dealers. Nickels would be OK, but why don't we go the distance and make it eighths? Back to fractions! After that we can sit back and watch the pigs fly around.
"Nickels would be OK, but why don't we go the distance and make it eighths? Back to fractions! After that we can sit back and watch the pigs fly around." Well said. I don't think we're going back to fractions, b/c the'yre a bunch of idiots on the floor. But, they should goto nickels. THERE is no benefit to indivdualizing the orders, and I hope the NYSE loses ALOT until they figure this out. Vinny
i would definitely like to see them go to nickel spreads. More movement, greater range, and less bullshit around the "number".
It would serve ALL traders/investors to go to nickel or dime increments, hence de-personalizing every offer. It would also give greater size to the bids and offers, promoting confidence in liquidity. Confidence = more helpful trading environment. Vinny