Odd-Lot orders NOT wanted!!

Quote from Odgnut:

Automate...so are you still trading the same way or are you adapting in some other way? If you're trading the same way...are they continually sending you new warnings?

My broker Cybertrader warned me that if I got more warnings...I would be subject to order-entry restrictions...which I guess means they would cripple my trading platform to only enter round lots.
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The platform I trade on now prohibits odd lot order entry except to close out an existing position. Odd lot orders to the specialist are absolutely prohibited under any circumstances so can only get out of odd and mixed lot trades on ECNs. These guys are serious about it too (the specialist that is). Felt the wrath of pissed off specialist a few weeks ago, and so to avoid any future problem with these dickheads any odd lot order to the specialist is out right rejected by our software.
And by the way, order entry restrictions can be more serious then only allowing you to enter round lots!
 
Quote from Odgnut:

I just received an email from Cybertrader that states:

"Please be aware that the NYSE & AMEX prohibit the unbundling of ARCA/NYSE/AMEX Listed round lots for the purpose of entering odd-lots. This notification is to inform you that your account xxxxxxxx exhibited this behavior on 08/01/2007.

We understand you may not have been aware of these regulations. However, should this type of trading activity continue, your account may be subject to order-entry restriction to ensure compliance with exchange rules."

I called Cybertrader and asked them what this means...and they simply stated that the exchanges didn't like me buying/selling in odd-lots and complained to Cybertrader about it. The representative said that it was a pain in the ass to deal with odd-lots and so they didn't want to have to deal with it.

I think it's ridiculous, since most orders are matched electronically anyways...and I almost always rout my orders through the ECNs (ARCA or Instinet (NSDQ)) what difference could it make to take my order? Also...I've been trading the same way for years...only using odd-lots with high-priced stocks ala GOOG, what did I do to suddenly trigger such a warning? Is this a new rule?

Anyone else get this warning before?
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So keep on trading goog this way. You didn't get any warning about that.
 
I trade day in and day out only in odd lots!!!
I average in most of the time & sell out the same way.
I trade 50/60/70shares or even 150/250 shares
in LEH,MER,SPY,QLD,SSO,UWM,TWM,UNG,BNI... etc.
Occasionaly when I trade RTH (Retail holder's Spider) or Transport Holder Spider ( I can't recall the ticker),I get a reply that less than 100 share order not acceptable.
IB is the best & $1 commision up to 200 shares($1ticket) is un beatable.
common stocks odd lot should not be a problem .
 
Odd-lots get preferential fills. If you use odd-lot order predominantly to trade, you will get noticed. If you use odd-lot orders to invest in something, no one will care. And as I recall, odd-lot orders are also hugely more expensive to fill on ARCA than round lots.
 
Quote from sprstpd:

Odd-lots get preferential fills. If you use odd-lot order predominantly to trade, you will get noticed. If you use odd-lot orders to invest in something, no one will care. And as I recall, odd-lot orders are also hugely more expensive to fill on ARCA than round lots.
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The comment on Arca is true if you take liquidity.

The other reason why odd lots are frowned upon is that they don't print on the exchanges if I recall.
 
Quote from krishiyer:

I trade day in and day out only in odd lots!!!
I average in most of the time & sell out the same way.
I trade 50/60/70shares or even 150/250 shares
in LEH,MER,SPY,QLD,SSO,UWM,TWM,UNG,BNI... etc.
Occasionaly when I trade RTH (Retail holder's Spider) or Transport Holder Spider ( I can't recall the ticker),I get a reply that less than 100 share order not acceptable.
IB is the best & $1 commision up to 200 shares($1ticket) is un beatable.
common stocks odd lot should not be a problem .
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I think it might be that certain specialist, ie Goldman (GS), BZH, are more intolerant than others. As I have said, I have occasionally traded odd-lots for years with no problems until this week. Since Nasdaq stocks don't have specialists...I will just avoid odd-lots for NYSE stocks.
 
Quote from rayl:

Actually I don't recall NASDAQ having similar restrictions.
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that's what I meant. I will only trade odd-lots with Nasdaq from now on. Don't trade NYSE stocks enough for it to be worth the headache to deal with crap like this.
 
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