Large retail order

makman · Apr 10, 2006

I have a relatively large chunk of an NYSE stock (125,000 shares) in an ETrade account that I wish to liquidate. I don't typically trade in that size so I'm not sure of what the specialist and/or etrade does when encountering a retail order a bit larger than typical. Is there any specific strategy I should use to dispose of that stock?

Obviously this is no biggie relative to what institutions trade all the time but I'm thinking that an etrade order might not get the same kind of handling.

Thanks.

indahook · Apr 10, 2006

Biggest question you have to ask is "whats the avg daily volume?". Then take it from there and piece meal if you have to. DO NOT release it all to mkt as a market order. Regardless of volume they will pull bids and cost you thousands on a trade of that size. Best bet is to phone your broker and stay with him (if you dont deal with the same agency trader day in and out) as he executes all the while giving you reports. Unless your dealing with a INDU type name a 125 piece will affect the market. So you have two choices. Brake it down to several blocks or sweep the market. This is where a good relationship will come in. If you can get a look from the post your in good shape already. Nothing better than hearing. "MER is a buyer.....25 top..been here all day". Or "BEAR a seller....100 to go....50limit" to help you with your decision making process.

good luck

Bachelier · Apr 10, 2006

just sell it in chunks if the market is not showing your entire size on the bid.

ksonsinc · Apr 10, 2006

Can u tell me what stock it is so that i can short it and make few $ on it if u dont mind

Tell me before u shot it

davidlynch2000 · Apr 10, 2006

Quote from makman:

Is there any specific strategy I should use to dispose of that stock?

First give me a call... then place a market order for all 125000.

JMowery1987 · Apr 10, 2006

Quote from makman:

I have a relatively large chunk of an NYSE stock (125,000 shares) in an ETrade account that I wish to liquidate. I don't typically trade in that size so I'm not sure of what the specialist and/or etrade does when encountering a retail order a bit larger than typical. Is there any specific strategy I should use to dispose of that stock?

Obviously this is no biggie relative to what institutions trade all the time but I'm thinking that an etrade order might not get the same kind of handling.

Thanks.

Scale out

I don't typically trade in that size

....... So then why did you trade in that size this time? It went against you too didn't it?

makman · Apr 10, 2006

Quote from ksonsinc:

Can u tell me what stock it is so that i can short it and make few $ on it if u dont mind
Tell me before u shot it

Sure, I'm selling 125,000 TCH at 12:42 PM today . Hope that helps

r-in · Apr 10, 2006

Quote from JMowery1987:

....... So then why did you trade in that size this time? It went against you too didn't it? [/B]

Could be a long term hold that its time to start reducing. I know a person who has similiar size in MSFT, DELL, and ABT. I don't think he added after his intial purchases just rode splits. The ABT maybe a hold from 30-40 years ago.

makman · Apr 10, 2006

Quote from r-in:

Could be a long term hold that its time to start reducing.

That's correct - I've been accumulating in small chunks; didn't buy it all at once.

krazykarl · Apr 10, 2006

Quote from makman:

I have a relatively large chunk of an NYSE stock (125,000 shares) in an ETrade account that I wish to liquidate. I don't typically trade in that size so I'm not sure of what the specialist and/or etrade does when encountering a retail order a bit larger than typical. Is there any specific strategy I should use to dispose of that stock?

Obviously this is no biggie relative to what institutions trade all the time but I'm thinking that an etrade order might not get the same kind of handling.

Thanks.

Just put in a limit order.

I use scottrade and when I have a large order it just churns on the order providing partial fills all the while....