Do you really want to know? It was a phrase someone I know use to use when they were getting hosed in a position. So they would yell out "I am getting cornholed". So back in the nasdaq trading- pre decimal days if they had a ton of shares and goldman was suddenly a big sell, they were basically going to get bent over by goldman.
Cornhole, I figured so much.....I just have to laugh everytime you I see your handle...no dis-respect intended...... Can I call you "corn"? Michael B.
Bullets were a HUGE edge on NYSE. If a 10000 share market short appeared on the tape, you could put up the bullet and hit the bid. Good for .25-.50 with .01 risk + spread. Cover on the first uptick as the short is lifted. OR Bad morning news, the only way to get short and participate in the .50 to 2 point drop was with bullets. You're not getting a short off with a 250000 share market short in front of you.
I think what some of the larger longer term traders are missing is the fact that when you have size out there and you let it sit there for a few minutes the clerk will try to take the book too you. The guys with bullets were trying to capitalize on that move and may have even been providing part of the fill. Its all trading and I do not think warren buffet has any right to feel superior to a 50 share trader if they are both making money.
Bullets were a way of making an illegal short legal! Enjoy loophole parties while you can and then just GET OVER IT!
bullets were a tool that traders used. why are so many people complaining when some traders say they miss them. take away one of your tools and see if you complain. it was legal, so traders used them. its now illegal so traders don't anymore. why is this question being asked over and over again?
You're right... that strategy didn't scale well... 1-2000 shares max. But I knew a few traders making $30K/month+ doing it.
it will hurt some day trading shops, most places were probaby charging $15/1000 shares, while the "bullets" would only cost a firm about $3-$5 for a 1000 shares, imagine a making a profit of $10-$12/1000 shares !!!
firewalker put it best . . . bullets were a huge advantage on the NYSE . . . it is physically impossible to get short in the scenarios he described without them . . . they are more or less useless on the nasdaq and especially on the qqq which have no uptick rule . . . some traders' entire trading strategy was about finding size on the offer and getting short in front with a bullet and THOSE guys are your biggest whiners . . . that aside though, it is EXTREMELY difficult to get short on the NYSE without them . . . hope that answers your question there eatie petie . . .