Commission on Limit Order for Specialist

[WinSum]

I can't remember how long a limit order must sit with the Specialist before he can collect commission for filling it.

Does anyone remember ? Was it 5 minutes ?

TIA

 

[SitrusTrader]

I'm pretty sure its 5 min. Hence the term: 5-minute ordes.

One way to get around them, is to program this feature in:

Cancel your limit orders at 4:00 minutes, then automatically put them in. Many of the platforms will allow that. In the worst case, you can do it manually.

For AMEX I think it is 2 minutes. But you should double check that.

 

[lescor]

It's called a specialist handling fee. He gets an extra cent/share for limit orders on the book more than 5 minutes. Obviously a cash cow for them, not like it requires any extra work on their part.

The thing that sucks about automatic cancel and re-sending of orders is that you loose your place in line at that price.

 

[SitrusTrader]

Quote from lescor:



The thing that sucks about automatic cancel and re-sending of orders is that you loose your place in line at that price. [/B]

That's true. It works on thinner securities really well. Otherwise, that is a BIG problem with it

 

[WinSum]

thx SitrusTrader & lescor

 

[SitrusTrader]

Quote from WinSum:

thx SitrusTrader & lescor

No Problem

 

[MACD_addy]

Quote from lescor:

It's called a specialist handling fee. He gets an extra cent/share for limit orders on the book more than 5 minutes. Obviously a cash cow for them, not like it requires any extra work on their part.

The thing that sucks about automatic cancel and re-sending of orders is that you loose your place in line at that price.

Not only do handling fees suck (it is a ridiculous price to pay), and you lose your place in line, but if your broker doesn't have a good NYSE or AMEX fee structure you get charge a cancellation fee on you limit order when you cancel it.

 

[ertrader1]

and i believe they are uping their fees soon, SLK sent me a memo on order handling fees for options and equities and a new fee rates,....but i read it briefly, now i got dig it out of the trash, because i belive they go into effect at the end of the month.....but double ck this guys.....im not sure if i read it proper......unless its a P$L statment, i usally skim two words and trash the memo.

 

[NYSEscalpa]

Quote from ertrader1:

and i believe they are uping their fees soon, SLK sent me a memo on order handling fees for options and equities and a new fee rates,....but i read it briefly, now i got dig it out of the trash, because i belive they go into effect at the end of the month.....but double ck this guys.....im not sure if i read it proper......unless its a P$L statment, i usally skim two words and trash the memo.

I find it hard to believe that a trader would not want to keep informed of any fee increases or if their commission rate has changed. Commission rates should be taken into account to trade a strategy- some strategies rely on a small edge and low commissions would be vital to its success. If you are a position trader though, I guess its not a huge consideration. I'm a scalpa, as my name says so any changes in commissions I watch like a hawk.....