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Maximizing chances of getting filled on ECNs
- Thread starter giggollo
- Start date
Really depends on the stock here folks. A MSFT, DELL, INTC post the bid on all 3 or whatever you got. For anything trading less than a couple of million a day there is no point to post it on more than one.
Here's what you do, post on ARCA (usually has the most liquidity and you can't get traded through), show less than 500 shares and make sure you are the first one in line by shaving the bid. You'll get hit here first 80% of the time. Putting three bids up is pointless even if you only see 100 on each ECN you are either going to get steamrolled by an order, getting filled on all of them or people will see the bids come and will start taking offers in front of you and you won't get filled on anything.
But the bottom line is if you don't know how to get filled on the bid and you clearly aren't scalping, why not just take an offer .01 higher. Do you really care about the penny?
Here's what you do, post on ARCA (usually has the most liquidity and you can't get traded through), show less than 500 shares and make sure you are the first one in line by shaving the bid. You'll get hit here first 80% of the time. Putting three bids up is pointless even if you only see 100 on each ECN you are either going to get steamrolled by an order, getting filled on all of them or people will see the bids come and will start taking offers in front of you and you won't get filled on anything.
But the bottom line is if you don't know how to get filled on the bid and you clearly aren't scalping, why not just take an offer .01 higher. Do you really care about the penny?
Quote from giggollo:
Great reply, thanks..Well the pennies can add up, over a large number of trades. Also the spread could be wider than a penny depending on whats stocks you trade. Is it true that you cannot get traded through on ARCA? How come?
No, it is not true. Your ARCA order can be traded thru. This is because:
A) The trade-thru rule has many exceptions, and
B) the trade-thru rule is routinely violated.
Your displayed ARCA order can be traded thru by executions occurring at markets other than ARCA, but it cannot be traded thru by ARCA executions, because ARCA follows a strict, automatically computed prioritization of orders.
Your order can die with ARCA. I had one sit there for days. If they don't have to get your order out of the way to trade their own then your order can sit for days while the market is trading higher through other ECN's. I'm convinced, at this point, that the situation is fine like that, you can watch the data from the exchange and if the price is right and your order is not getting worked then you can cancel and reroute it. Vote with your feet as it were. If you get all your data from your broker then I am not sure if you will be seeing exchange data or data from the ECN that your broker routed it to. This is largely theory on my part, I just started trading via ECN's but have not gotten the system up and running beyond a couple of test days.
Thanks for all replies....
If i place a sell limit order on INET with a limit price lower than the current bid, and there is only 1 bidder bidding above my sell order limit price, in what cases will a transaction occur instantly with that bidder:
1. bidder is on BRUT
2. bidder is on ARCA
3. bidder is on SIZE
If i place a sell limit order on INET with a limit price lower than the current bid, and there is only 1 bidder bidding above my sell order limit price, in what cases will a transaction occur instantly with that bidder:
1. bidder is on BRUT
2. bidder is on ARCA
3. bidder is on SIZE
how about going via https://lavatrading.com/lava/equitiespage.aspx?f=solutions/tradingfloor ?