You are using an out of date browser. It may not display this or other websites correctly.
You should upgrade or use an alternative browser.
You should upgrade or use an alternative browser.
Adapting to the Hybrid
- Thread starter JGTrader
- Start date
Quote from chud:
Could someone explain what a "sweep" is?
Thanks.
A sweep is just like what it sound. A guy would place an order 50 cents through the offer to buy. He would get fill whatever is sitting on the book up to 50 cents OR getting whatever quantity his order goes for within that 50 cents. In the good old days, the specialist would probably "freeze" the book and fill his order all in one block at one price.
Traderyin and/or Don,
Is there a specific and reliable method to spot a sweep?
And once you spot it, how can you tell if the sweep has ended?
thanks
Is there a specific and reliable method to spot a sweep?
And once you spot it, how can you tell if the sweep has ended?
thanks
Quote from narballs:
a stock was at 40.10 by 40.13
I had order to sell 200 shares at 40.26.
I get filled and i noticed the bid offer really didn't change. what was the reason for this? did someone just sweep thru the openbook and the offer wasn't reflected?
yes, in my own observation I find that to be very often for hybrid stocks. I really think that most of the time it is not a sweep when the size of the prints are not that big (less than 1000 shares), with the size in the market much bigger relative to the out-of-market prints.
I will speculate that the algo. for the order matching is still underway, OR it is an intention to screw day traders. Reading the tape or relying on size will provide no use imo as a result of the implementation of the hybrid market.
One thing I don't understand is the intention of getting rid of day traders as many claims the hybrid market does. Day traders provide huge amount of liquidity, alternatively stablize the market for narrowing the bid/ask. Day traders like us will know in the long run this is a scam and calling quit, thus liquidity will be driven down. Or program trading is so advanced that it does the role of most day-trader do that discretionary day-trader is over with its role in history?
I have relative little experience with the NASDAQ and will like to hear traders with experience trading against computers.
thanks
a stock was at 40.10 by 40.13
I had order to sell 200 shares at 40.26.
I get filled and i noticed the bid offer really didn't change. what was the reason for this? did someone just sweep thru the openbook and the offer wasn't reflected?
yes, in my own observation I find that to be very often for hybrid stocks. I really think that most of the time it is not a sweep when the size of the prints are not that big (less than 1000 shares), with the size in the market much bigger relative to the out-of-market prints.
I will speculate that the algo. for the order matching is still underway, OR it is an intention to screw day traders. Reading the tape or relying on size will provide no use imo as a result of the implementation of the hybrid market.
One thing I don't understand is the intention of getting rid of day traders as many claims the hybrid market does. Day traders provide huge amount of liquidity, alternatively stablize the market for narrowing the bid/ask. Day traders like us will know in the long run this is a scam and calling quit, thus liquidity will be driven down. Or program trading is so advanced that it does the role of most day-trader do that discretionary day-trader is over with its role in history?
I have relative little experience with the NASDAQ and will like to hear traders with experience trading against computers.
thanks
Quote from kwancy:
Quote from narballs:
a stock was at 40.10 by 40.13
I had order to sell 200 shares at 40.26.
I get filled and i noticed the bid offer really didn't change. what was the reason for this? did someone just sweep thru the openbook and the offer wasn't reflected?
This seems to be an unforeseen benefit to the hybrid system, and my traders are loving it. The automated scalpers and the pairs guys both are getting some good pricing.
Don
Quote from Don Bright:
This seems to be an unforeseen benefit to the hybrid system, and my traders are loving it. The automated scalpers and the pairs guys both are getting some good pricing.
Don
Don:
How do the enveloping strategy fares in HYBRID?
There is a new fee structure which will charge fees for NYSE orders when the ratio of order cancellation vs Fill > 90%.
Dont know if you are aware of this.
I believe the NYSE is discouraging this kind of practice (ENVELOPING). However, I cannot understand why they would also count IOC order that gets cancelled. Because this is a legitimate order that doesnt recieve fill. Therefore it should not be counted as cancelled orders.
Dnajos:eek:
That cancellation thing may be a tie in from the Options floor, I know that Susquehana was trying to get it through on the AMEX (actually did I think, but we rarely trade AMEX anyway). I have asked Goldman for some clarification, thanks.
Don
Don
hi Don
what exactly do you know about trading trough Amex. I trade Amex and quite often i adjust my bid - offer let's say its kind of envelope strategy.
By the way what will happen if I trade Amex or NYSE stocks through Inet, they do not have such limitations (adjusting bid offer prices, cancellations etc) (these kind of rules would be very bad if you have a low fill ratio - like the rules on CME/CBOT)
thanks
what exactly do you know about trading trough Amex. I trade Amex and quite often i adjust my bid - offer let's say its kind of envelope strategy.
By the way what will happen if I trade Amex or NYSE stocks through Inet, they do not have such limitations (adjusting bid offer prices, cancellations etc) (these kind of rules would be very bad if you have a low fill ratio - like the rules on CME/CBOT)
thanks