How to hit bids and offers on NYSE and NAZ
- Thread starter newbie2006
- Start date
I would just buy/sell at "market". Don't burn so much brain power, just get in and get out.
Trade liquid stocks...your small size is a mere blip on the screen...
Do the math sometime....take one of your stocks you like and divide the number of shares by an amount of time, 1 minute, 1 hour etc...
Take DELL for example....trades 20,000,000 daily...that is 3,000,000 per hour....51,000 per minute...just get in, get out...lots of thickness at each price level..
SteveD
Trade liquid stocks...your small size is a mere blip on the screen...
Do the math sometime....take one of your stocks you like and divide the number of shares by an amount of time, 1 minute, 1 hour etc...
Take DELL for example....trades 20,000,000 daily...that is 3,000,000 per hour....51,000 per minute...just get in, get out...lots of thickness at each price level..
SteveD
Thats probably because your broker turns off the INET reroute feature from their server side. Some brokers may do that because yes, they charge more for reroute (extra .001).
INET reroute being available is a 100% fact and not debatable. It is and has been available since the merger. I do it all the time, almost daily. INET will reroute orders exactly as ARCA does. In my experience they reroute just as efficiently as ARCA does.
On liquid stocks market orders work fine. Obviously, if you pay very high fees for removing liquidity on ECNS, and it makes a difference to your p/l, than you might be better off executing your sales by offering stock or buys buy bidding stock first.
However, in fast markets its nice just to get into the trade (by using a market order or hitting the ask to buy, etc.). Typically, in a faster moving stock you can hit a market order when the momentum starts and then, when you feel the momentum slowing, you can offer out of a long position or bid out of a short.
My level II is set for Auto. Auto is configured for ARCA first for market orders, then my software sweeps the rest of the ECNS and market makers, and avoids some fees for my firm.
My trading style isn't based on adding/removing liquidity and I pay an all-in rate. I analyzed my trading and found out that I add liquidity on about 25% of my trades, and without wanting to deal with checking up the ECN rebate/fee accounting every month (would be millions of shares to account for), I use market orders frequently in the stocks I trade. Market orders remove liquidity.
In liquids stocks, NAS market orders are fine, especially for 100 to 500 shares, in my opinion. HOwever, talk to your tech support or trading support desk and make sure you have all the Nasdaq routing entitlements available to you, and also that you configure your trading software to use those availalbe routes. Take the time, when it's misadjusted the market order fills will be bad, but when adjusted well it works very well.
However, in fast markets its nice just to get into the trade (by using a market order or hitting the ask to buy, etc.). Typically, in a faster moving stock you can hit a market order when the momentum starts and then, when you feel the momentum slowing, you can offer out of a long position or bid out of a short.
My level II is set for Auto. Auto is configured for ARCA first for market orders, then my software sweeps the rest of the ECNS and market makers, and avoids some fees for my firm.
My trading style isn't based on adding/removing liquidity and I pay an all-in rate. I analyzed my trading and found out that I add liquidity on about 25% of my trades, and without wanting to deal with checking up the ECN rebate/fee accounting every month (would be millions of shares to account for), I use market orders frequently in the stocks I trade. Market orders remove liquidity.
In liquids stocks, NAS market orders are fine, especially for 100 to 500 shares, in my opinion. HOwever, talk to your tech support or trading support desk and make sure you have all the Nasdaq routing entitlements available to you, and also that you configure your trading software to use those availalbe routes. Take the time, when it's misadjusted the market order fills will be bad, but when adjusted well it works very well.