Opening Orders - 2009

[trend2009]

Don,

when you said "NYSE stocks may open at 9:30 or 9:35 etc., based on order flow etc.", does it mean there are two exchanges that have open auction? in that case, how can they assure the open price is the same? if not, then the data we often use in technical analysis including open,high,low,close may have to be reconsidered about its reliability.

 

[lescor]

Each stock opens on the nyse when the specialist is ready to open it. The exchange opens at 9:30, but individual stocks can take up to 10 minutes to open after that. It's quite common for me to have dozens of symbols not open yet 3 or 4 minutes into the day.

 

[sucre_estave]

Quote from Don Bright:

I have to ask.... are you sure that you guys at IB (which my family has an account), can place a $million worth of orders with only about $25K in their account? The potential fills (only half of course) would be waaaay over PDT rules..... I called my "guy" and he said no way....

I just don't want any mis info out there.... my "guy" could be mis understanding my question...

Don

Can't speak for IB, but you still need enough in your account to cover the fills you do get. Pretty sure they monitor in real time and if you hit your max the remaining orders are canceled and/or any positions are closed immediately to get you in line.

 

[Don Bright]

Quote from trend2009:

Don,

when you said "NYSE stocks may open at 9:30 or 9:35 etc., based on order flow etc.", does it mean there are two exchanges that have open auction? in that case, how can they assure the open price is the same? if not, then the data we often use in technical analysis including open,high,low,close may have to be reconsidered about its reliability.

Yes, there are tremendous disparities from the use of "consolidated quotes" vs. "primary marke quotes" - and we have the ability to have either choice on our platform. This works pretty well to ensure we are using the proper "OHLC" data each day.

Don

 

[trend2009]

Is it possible that openning price at the other exchanges have better price than on the primary exchange? if so, why not try post orders on those non-primary exchanges?

 

[Don Bright]

Quote from trend2009:

Is it possible that openning price at the other exchanges have better price than on the primary exchange? if so, why not try post orders on those non-primary exchanges?

Because there is not "opening" - simply pricing based on premarket ECN's etc. NYSE has actual order type of "Opening Only" (OPG).

Don

 

[Fib Gridsman]

Ordinarily, when everyone is getting frustrated with a strategy, eg. OPG Strategy, I see it as the time that it is most likely swing back and start working again. I wonder if this time is different? Volume is moving away from the primary markets, specialists moving upstairs (SLPs) or out of business... Does any of this serve to increase the edge? Isn't the strategy about specialist participation in the opening print? I wonder if some OPG veterans can chime in on this.

 

[trend2009]

Maybe only people like Don who has been with this strategy for many years know if OPG nowadays is much less profitable than 5 years ago,or the less profitabiliy results from more people playing it or specialists move out of business.

Quote from Fib Gridsman:

Ordinarily, when everyone is getting frustrated with a strategy, eg. OPG Strategy, I see it as the time that it is most likely swing back and start working again. I wonder if this time is different? Volume is moving away from the primary markets, specialists moving upstairs (SLPs) or out of business... Does any of this serve to increase the edge? Isn't the strategy about specialist participation in the opening print? I wonder if some OPG veterans can chime in on this.

 

[thetrendfollowe]

Quote from lescor:

Each stock opens on the nyse when the specialist is ready to open it. The exchange opens at 9:30, but individual stocks can take up to 10 minutes to open after that. It's quite common for me to have dozens of symbols not open yet 3 or 4 minutes into the day.

Lescor.
Is the NYSE open staggered?
eg. Tickers beginning with A-C open at 9:30am, D-F open at 9:32am, etc, etc. Until the very last stocks open at 9:38 or 9:40.

Maybe this is what happens?

(I know thats how the ASX open is structured).

 

[Don Bright]

Quote from thetrendfollowe:

Lescor.
Is the NYSE open staggered?
eg. Tickers beginning with A-C open at 9:30am, D-F open at 9:32am, etc, etc. Until the very last stocks open at 9:38 or 9:40.

Maybe this is what happens?

(I know thats how the ASX open is structured).

No, they just open when price is determined based on order flow and booked orders.

FWIW, I generally cancel my opg orders about 3 minutes after the bell (keeps me from being surprised, LOL).

Don