Getting the .0001 fills?

E

elduerino

Hey guys, the title explains all of it, when looking at stocks that have massive volume, I see many .0001 fills or .0099 fills. Is there a particular exchange or are they all intrafirm trade type things? I understand it is a massive edge and you may not want to say it here, I accept that.

Thanks
 
If a liquid stock is trading $3.00 to $3.01, a market maker may have a lot of customer orders to buy at $3.00 and sell at $3.01. If he receives a order from another customer to sell stock at $3.00, he has a couple of choices: 1) he could let one of his other customers buy it at $3.00 or 2) he could give price improvement to the seller and buy the stock for his own inventory at $3.0001. I think this is why you see so many executions with .0001 price improvement. If anybody has another explanation please share it.
 
so essentially it is the MM who can make those price. I would put that in the category of flash order. Really appreciate the response.
 
A quick Google search produced

"Traders can only quote subpenny prices on exchanges when a stock's value dips below $1 to give investors more potential quotes, although stocks can be delisted if they languish below this mark for too long."

So if the stock is below $1 you can place an order like buy 10,000 at $0.2345 but if the stock is above $1 I don't think you place an order like buy 10,000 at $1.2345, the order would be rejected. Now if you place an order to buy at $1.24 you might get a fill at $1.2345 but that's different that allowing your order to be entered in sub-penny increments.
 
Yea I know we can't place them, i was wondering who can, because when you look at T&S tick data you see so many amazing .0001/.0099 fill, the type of fills, (10000 shares on the right side when the market is moving) that make you drool.
 
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