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To all NYSE Traders
- Thread starter saschabr
- Start date
Whenever i see something funny like that I try it again. Usually on Nasdaq stocks ecn's put in peg orders with certain prices in range. That could have been the scenario with you so try it again and if it happens again then there must be some computerized system trading that stock. Sometimes you can actually make money doing that. On slow stocks, i usually bid higher and a peg order bids higher and then i hit the bid and short the stock and try to buy it cheaper.
Hans
Hans
if i am not mistaken, if it was the specialist protecting his turf, even though he only posted 100s on the better bid, this wouldnt preclude him from buying more than 100s, i.e. someone comes in with 4600s sell in this example, he could take out the whole offer, .02 better.
chasinfla, i have software that allows someone to keep best bid/offer, in fact IB allows you to do so, i have seen this, but in this example the 100s would already have been best bid so i dont think it would be software.
easy way to find out though, next time place another bid .01 better and see what happens, if you get pennied again, maybe its software, or maybe someone takes out some of the offer if you get too close
chasinfla, i have software that allows someone to keep best bid/offer, in fact IB allows you to do so, i have seen this, but in this example the 100s would already have been best bid so i dont think it would be software.
easy way to find out though, next time place another bid .01 better and see what happens, if you get pennied again, maybe its software, or maybe someone takes out some of the offer if you get too close
The reason he did it was to step in front of you. If the bid was him, then you would take preference. If the .85 bid was a downtick then he can definately step in front of you cause he can buy on the downtick. He was trying to get you to go market, get filled higher so he can take your shares lower.
My guess is that either he made a mistake or he regignized your trading pattern. Specialists hate day traders. They think weare invading their turf. Dont trade the same stock over and over durring the day. They will get to know you and burn you.
the only reason the spec would care about your bid is if he was the .83 bid, then your shares would be 1st in line.
You could wait for the .83 bid to show again and then status your order, if 0 ahead that's his bid.
To defend that, the spec just ups to .85 for 1, and he has no responsiblity to fill there and you can't status anymore.
If he gets a (mkt) sell order, he can fill his shares at .84, and still leave you hanging, plus, he's scaring you into buying higher (oh no, .85 bid for 1!)
OR, you are paraniod and someone else put the .85 bid
Karl
You could wait for the .83 bid to show again and then status your order, if 0 ahead that's his bid.
To defend that, the spec just ups to .85 for 1, and he has no responsiblity to fill there and you can't status anymore.
If he gets a (mkt) sell order, he can fill his shares at .84, and still leave you hanging, plus, he's scaring you into buying higher (oh no, .85 bid for 1!)
OR, you are paraniod and someone else put the .85 bid
Karl
You got pennied by somebody. I know I penny all day long. Very easy to do now. You wanted it(public), you got it. Now you pay.
I think if you check the rules, the Specialist is not required to show your bid (at least for 2 minutes, and never for 100 shares). What he(she) may be doing is, in fact, making a better market, but using a small number (1x1 for example), to block out the use of the "nx" option. Remember, there are dozens (hundreds) of orders going in and out all day long, and this is a human procedure (partially anyway).
Another point to remember, is that when the Specialist is not "reflecting" your order, that they may be ready to give you a better price. (price improvement is common on the NYSE, especially between existing markets).
Don
Another point to remember, is that when the Specialist is not "reflecting" your order, that they may be ready to give you a better price. (price improvement is common on the NYSE, especially between existing markets).
Don