The reason why trading odd lots on the NYSE is no longer possible with IB is that some people took advantage of the special treatment that is afforded to odd lot orders. Scalping with odd lots allows you to pick off the specialist and therefore is prohibited by exchange regulations. It seems that instead of going after the individual offenders IB has decided to disable it for everybody.
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IB Woes
- Thread starter ShoeshineBoy
- Start date
Hi everyone !
If i consider trading 50 shares of nasdaq stock all the time, will i have problem getting filled ?
Firstly, can i hit someone selling 100 shares with my 50 shares order ?
Secondly, if i place a inside bid of 50 shares will any seller wants to hit my order since most trader would be trading a minimum of 100 share ?
Finally, is island the only ECN offering odd lots trading ?
Guys, thanks in advance for sharing your experience.
> If i consider trading 50 shares of nasdaq stock all the
> time, will i have problem getting filled ?
Except in highly liquid stocks you will have problems because your quote won't be visible to the broader market and many ECNs don't accept odd lots. Why not trade in 100 lots in the first place?
> Firstly, can i hit someone selling 100 shares with my 50 > shares order ?
Yes, provided it's an MM or an ECN that will match full lots with odd lots.
> Secondly, if i place a inside bid of 50 shares will any
> seller wants to hit my order since most trader would be
> trading a minimum of 100 share ?
Not unless he happens to see your order directly on the ECN book since you won't show up on L2.
> Finally, is island the only ECN off>ering odd lots
> trading ?
ISLD and ARCA fully support odd lots. REDI and INCA will accept odd lots but will only match them with other odd lots and BTRD and BRUT will reject them outright. As for MKXT, I'm not sure how it handles them. So your only viable choices are ISLD and ARCA.
> time, will i have problem getting filled ?
Except in highly liquid stocks you will have problems because your quote won't be visible to the broader market and many ECNs don't accept odd lots. Why not trade in 100 lots in the first place?
> Firstly, can i hit someone selling 100 shares with my 50 > shares order ?
Yes, provided it's an MM or an ECN that will match full lots with odd lots.
> Secondly, if i place a inside bid of 50 shares will any
> seller wants to hit my order since most trader would be
> trading a minimum of 100 share ?
Not unless he happens to see your order directly on the ECN book since you won't show up on L2.
> Finally, is island the only ECN off>ering odd lots
> trading ?
ISLD and ARCA fully support odd lots. REDI and INCA will accept odd lots but will only match them with other odd lots and BTRD and BRUT will reject them outright. As for MKXT, I'm not sure how it handles them. So your only viable choices are ISLD and ARCA.