Odd-Lot orders NOT wanted!!

[mde2004]

Quote from Odgnut:

thanks for the reply rayl. I can understand why they would impose a rule on brokers or big institutions that try to hide big orders by unbundling big orders into small ones. But for a small individual trader...what could possibly be the harm? The stock they told me I broke this rule in was GS (Goldman Sachs)...it's not like a stock like that was lacking in liquidity that they could find enough shares to cover my buying/selling. It just makes no sense to me.

It could possibly cause issues for the broker so you must abide by their rules bro.

 

[spreadgod]

Quote from kwtrade:

For an order size of 100, what's the most it's been chopped into?

For me
80 and 20, which was annoying, because I paid two trading fees I guess, but then I learned to click all or nothing. Doesn't that prevent odd lots?

I orderd 25 of something the other day and got
20 and 5.

most firms won't let you place an all or none on 100 shares. as long as it's executed on the same day, you should only be paying one fee. also, you can get executed in odd lots even for all or none, as long as the order is executed completely that condition is satisfied.

 

[QQQBALL]

Quote from eusdaiki:

I hate those freakin 15 share fills... stick to round lots and make everybody's life easier.

yeah, i hit the exact LOD for ZEUS one morning. got filled on 4 shares.

 

[Strategery]

From what I remember you get filled on the last print. So if I was scummy, I could monitor a universe of thinly traded stocks. Say the last print on ABC Corp was 31.42 which was a minute ago. Since then the market has rallied a bit and the current mkt on ABC is 31.58 - 31.62. I now have my automated bing bonger program send 100 orders to the NYSE to buy 99 shares at the mkt. I get filled @ 31.42. I now go whack a bid on an ecn and sell 9,900 shares at somewhere around 31.58. This is what pisses people off, and it's understandable.

Quote from wilburbear:

The system gives fills at the last print, or the last odd lot print? If a market is 33.01 - 33.04 and the last print is 33.02, what is so special about getting 33.02? This is not an antagonistic post. Just trying to get to the heart of the matter. Can you provide an example of one of these trades when it works?

 

[rayl]

Quote from kwtrade:

For an order size of 100, what's the most it's been chopped into?

For me
80 and 20, which was annoying, because I paid two trading fees I guess, but then I learned to click all or nothing. Doesn't that prevent odd lots?

I orderd 25 of something the other day and got
20 and 5.

Most brokers will charge one fee per day.

Moreover, AONs have another issue. They are not natively supported by most exchanges so you get a simulated order vs a limit order in the book. This lowers your priority, and also means the order is not a protected order under NMS.

 

[kwtrade]

Quote from rayl:

Most brokers will charge one fee per day.

Moreover, AONs have another issue. They are not natively supported by most exchanges so you get a simulated order vs a limit order in the book. This lowers your priority, and also means the order is not a protected order under NMS.

Thanks. I did go back and check and yep, I was charged just one commission. But that leave me unsure of why people so dislike odd lots???

Thanks for the tip about all or nothing. I'll stop using that.

Kris

 

[rayl]

Quote from kwtrade:

Thanks. I did go back and check and yep, I was charged just one commission. But that leave me unsure of why people so dislike odd lots???

Thanks for the tip about all or nothing. I'll stop using that.

Kris

Bec odd lot quotes are not displayed, not protected, more expensive to execute on ECNs.... hedging strategies with options cover round lot multiples.. so if you put in an order to buy 500 shares and get 38 shares, it's a big nuisance. What the hell do you do with the 38 shares? Now you try to get the other 462.... well your quote for 400 will display but not for the 62.... etc.


It's true that due to certain outdated practices, odd lots can actually get preferential execution on NYSE, AMEX... but that benefit is small bec the order size is small (unless you abuse the system by putting in multiple odd lot orders, which is what the rules are meant to prevent).

 

[speculatus]

Quote from Strategery:

From what I remember you get filled on the last print. So if I was scummy, I could monitor a universe of thinly traded stocks. Say the last print on ABC Corp was 31.42 which was a minute ago. Since then the market has rallied a bit and the current mkt on ABC is 31.58 - 31.62. I now have my automated bing bonger program send 100 orders to the NYSE to buy 99 shares at the mkt. I get filled @ 31.42. I now go whack a bid on an ecn and sell 9,900 shares at somewhere around 31.58. This is what pisses people off, and it's understandable.

NYSE will execute odd-lot market orders at the price of the next round-lot print.