I've been practice trading for a long time and think I have a working strategy. My only weakness seems to be my position sizing. I'll make a decent gain on a smaller stock (1-3) with 100-200 shares but I'll end up giving it back with 100 shares of a stock in the 20s-60s from a few ticks. How viable is trading with odd lots on stocks and indexes? say 70 shares, I would be a lot more active/comfortable trading with really small positions.
Is trading with odd lots viable? (IB)
- Thread starter pk3r1234
- Start date
As a general rule, you can't trade odd lots if you're with a prop firm (licensed), or some firms that don't allow it. However, every retail firm that I know of will allow a retail trader to enter/exit odd lots. I've bought odd lots on several stocks and indexes, AAPL, DIA, etc., and never had issues, as long as you use limit orders you're fine.
Do market orders get filled at a bad price or will the order not go through unless you're using a limit order?
Your market order will go through, but you may get a lousy fill, especially on a volatile stock or a stock with wider spreads between the bid/ask. I just use limit orders when it comes to odd lots, so that way I know what price I'll get.
That's just a myth .......... Market orders are perfectly fine, and you will not get a "lousy fill". And during volatile times Market Orders should be used exclusively, the OP will figure that out after a few trades.
That's just a myth .......... Market orders are perfectly fine, and you will not get a "lousy fill". And during volatile times Market Orders should be used exclusively, the OP will figure that out after a few trades.
Ya, I'm sure the guy with the market stop on AAPL on the day ES opened limit down would fully agree.
Could you give the actual scenario with quotes so that everyone is on the same page. Your post is too ambiguous.
The OP was asking about market orders. On the day when ES opened limit down, many stocks and ETFs opened WAY BELOW their prior close, despite any adverse news of that particular stock (or ETF). At first it was thought that the trades would be canceled, but they weren't. So anyone who sold "at market" or who had a market stop may have been filled at an unfortunate price (depending on whether you were a buyer or seller), where it was difficult to find price discovery. Many "odd lots" got filled (i.e. mom and pop orders for fractional shares). Also, those who bought "at market" may have paid the ask on a ridiculously wide spread. (If you saw the bid/ask on SPY options, the spread was INSANE).
Hence, those who either BOUGHT at market or SOLD at market may not have been filled at the optimum price, however all of the news claim that "price discovery" was met, which of course is subject to interpretation.
This was a rare instance where the NYSE invoked a seldom used rule called Rule 48. You can read about it here and on the net.
http://www.businessinsider.com/nyse-rival-says-handling-of-market-chaos-was-absurd-2015-9
Hence, those who either BOUGHT at market or SOLD at market may not have been filled at the optimum price, however all of the news claim that "price discovery" was met, which of course is subject to interpretation.
This was a rare instance where the NYSE invoked a seldom used rule called Rule 48. You can read about it here and on the net.
http://www.businessinsider.com/nyse-rival-says-handling-of-market-chaos-was-absurd-2015-9
No need for the song and dance with an external link. Get to an actual situation and post it here.
!!! PUT UP OR SHUT UP !!!
That's just a myth .......... Market orders are perfectly fine, and you will not get a "lousy fill". And during volatile times Market Orders should be used exclusively, the OP will figure that out after a few trades.
what are you, a SIM trader? a 1 lot piker, a 10 share piker?
your statement clearly indicates you have NO IDEA what you talking about