Hidden orders

[hedgex]

When we see quotes in bid/ask, there is something not show. I have got prices better than the bid/ask, that is, between them, with no delay. For example, when the bid/ask is 3.2/3.5, as soon as I transmit a sale order limit 3.25, the order is filled instantly. There seems to be a limit buy order, invisible, for 3.3. The invisible trader has an advantage over the public. Is this true of your experience?

 

[monty21]

Yea hidden orders are nothing new. I can do them from Lightspeed and Redi among other platforms.

So you're getting hit on hidden orders... no advantage. I frequently put a 43.0203 limit order, so step in front of the 42.02 bidders. There's no advantage though.

 

[spindr0]

Your 3.25 offer might facilitate the fill of someone else's spread order that's cts away from a fill... or it could be 10 cts away and the MM is taking a nickel off the other side as well, etc.