Can't get filled on the bid

E

ET180

I have noticed many times that when I enter a limit order to sell options on the bid, the bid suddenly moves lower and I don't get filled. I have noticed this even with 1 lots while there were where hundreds of contracts sitting on the bid and all of a sudden, as soon as I place my sell limit order at the bid price, they all vanish and move lower. I have never sold options using a market order, but if I did, would that still happen? I don't think it should because other traders should not be able to see market orders, only limit orders. I reason that market orders should only be visible by my broker and the exchange would execute them on first-come first-serve basis against best limit order offers on the books. Is that true?
 
First, what broker is this?
I've never seen this. If I send a limit order on the bid/sell or ask/buy it fills immediately. I use IB.
Also, are you using smart routing or direct?
 
stevegee58 said:
If I send a limit order on the bid/sell or ask/buy it fills immediately

I use IB
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I should switch brokers -- I'm on the same boat as him, sometimes.

If I place a buy/sell limit order at the bid/ask prices...they don't always get filled...I have to just immediately use Market, if I want an instant Fill. o_O
And this is on SPY, mind you...the most Liquid.

I feel like I'm getting cheated by a few pennies somehow Somewhere along the supply chain,
 
ET180 said:
I have noticed many times that when I enter a limit order to sell options on the bid, the bid suddenly moves lower and I don't get filled. I have noticed this even with 1 lots while there were where hundreds of contracts sitting on the bid and all of a sudden, as soon as I place my sell limit order at the bid price, they all vanish and move lower. I have never sold options using a market order, but if I did, would that still happen? I don't think it should because other traders should not be able to see market orders, only limit orders. I reason that market orders should only be visible by my broker and the exchange would execute them on first-come first-serve basis against best limit order offers on the books. Is that true?
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It would help to know the broker, route and symbol. I'm not getting those complaints with our software and routing.
 
If you are a customer and hit the bid or take the offer for the amount shown, you should be filled instantly (the only exception would be the SPX if a broker is holding an order).
 
FSU said:
If you are a customer and hit the bid or take the offer for the amount shown, you should be filled instantly (the only exception would be the SPX if a broker is holding an order).
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Not that simple. If the bid in on ARCA and you route your order to PHLX, there are delays that can allow a MM to move.
 
Robert Morse said:
Not that simple. If the bid in on ARCA and you route your order to PHLX, there are delays that can allow a MM to move.
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Bob, anytime I route to an exchange different from where the best bid/offer is I have still been filled. If I am hitting a bid or taking an offer on another exchange, I route to the CBOE with hopes they will match and I will not have to pay taking liquidity fees. I still have not encountered any problems with at least being filled.
 
FSU said:
Bob, anytime I route to an exchange different from where the best bid/offer is I have still been filled. If I am hitting a bid or taking an offer on another exchange, I route to the CBOE with hopes they will match and I will not have to pay taking liquidity fees. I still have not encountered any problems with at least being filled.
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With DMA I agree. "SMART" routes can be option dark pools or have an OMS that will not take liquidity on exchanges that charge too much. There are too many variations with option brokers. We have no idea what his situation is.
 
Robert Morse said:
With DMA I agree. "SMART" routes can be option dark pools or have an OMS that will not take liquidity on exchanges that charge too much. There are too many variations with option brokers. We have no idea what his situation is.
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Good points.
 
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