On open orders?

jj_jere@hotmail · May 31, 2003

I have an account with Brown & Co. and they do not have NYSE on open orders. If I place a "buy" market order a half hour before the opening, will that be the same as a "market on opening order"? If I place a "sell" market order will I recieve the first upticked price? Thanks; JJ

Don Bright · Jun 4, 2003

You should be able to specify an "opening only order" even with a retail firm (as opposed to a "day order"). They probably won't allow you to place buys and sells on the same stock for the opening, but they certainly should allow you place one or the other.

Don Bright

nitro · Jun 4, 2003

Quote from jj_jere@hotmail:

I have an account with Brown & Co. and they do not have NYSE on open orders. If I place a "buy" market order a half hour before the opening, will that be the same as a "market on opening order"? If I place a "sell" market order will I receive the first upticked price? Thanks; JJ

IMHO, just place a limit order before the open. This is what I used to do with IB before they supported LOO and MOO. You will automatically get price improvement if you route to the NYSE.

The only difference between a LOO and a regular limit order is that a LOO will automatically cancel if not executed on the opening print. This can be dangerous, but for the most part, it is OK as long as you remember to cancel all your open orders that did not get filled on the open. Note that as the number of orders you are placing with just plain old vanilla limit orders goes up, the greater the chance of forgetting and a catastrophe.

nitro

Nordic · Jun 4, 2003

Quote from jj_jere@hotmail:

I have an account with Brown & Co. and they do not have NYSE on open orders. If I place a "buy" market order a half hour before the opening, will that be the same as a "market on opening order"? If I place a "sell" market order will I recieve the first upticked price? Thanks; JJ

They are probably routing it to a dealer'(s).

jj_jere@hotmail · Jun 5, 2003

Brown & co has on opening orders, but not via the internet, you have to call them in. As most on my orders will be market orders, I was interested in how they will be handled when I place then after the close on the NYSE.
Thanks jj

Don Bright · Jun 5, 2003

Quote from jj_jere@hotmail:

Brown & co has on opening orders, but not via the internet, you have to call them in. As most on my orders will be market orders, I was interested in how they will be handled when I place then after the close on the NYSE.
Thanks jj

It makes no sense to place "market orders" for the opening......especially if you're trying to take advantage of the Specialist's widening of pricing. Rarely, if ever, are "market orders" suggested for trading the market.

Don

swtrader · Jun 5, 2003

Opening orders requires VERY close attention and meticulous management, and mistakes in execution will hurt you very quickly.

Personnaly I would no do it with an account that does not support MOO. IB supports MOO

Eldredge · Jun 5, 2003

If you decide to use regular market orders, be sure to route to NYSE or you might get a fill you really don't want via an ECN. I would use limit orders.

jj_jere@hotmail · Jun 8, 2003

To be more specific, If I place a market order to buy xyz thru the NYSE after the close; will I get the next days opening price or will the specialist give me what he feels like? Using my system, I only want the opening price, I don't care what it is.
Thanks JJ

speedy · Jun 8, 2003

Quote from jj_jere@hotmail:

To be more specific, If I place a market order to buy xyz thru the NYSE after the close; will I get the next days opening price or will the specialist give me what he feels like? Using my system, I only want the opening price, I don't care what it is.
Thanks JJ

order will be rejected after the close