Traders beware island scam

[stock777]

How can it be unethical to place an order ANYWHERE outside the market. OK, maybe at 1 cent bid.


FWIW, I've seen many more ISLD bids and offers (outside the market) get picked off at a bad time , especially after hours, than benefit by some mistake.

If you are trading with the pointer of your mouse, and not paying attention to price, than that's the problem. If clowns want to put sitting duck bids and offers on ISLD, then I have no problem with that, hopefully I will eat thier lunch a few times a year.

 

[Free Thinker]

when after hours trading first started there were some lesser known stocks that had no bids\asks on one side.i had a system to search out stocks with no bids and i would put in stink bids.i got a many nice buys that way.the problem is 9 out of 10 got busted.the mm must of got wise to it because all stocks seem to have a mm on both sides after hours now.

 

[metooxx]

Originally posted by stock777
How can it be unethical to place an order ANYWHERE outside the market. OK, maybe at 1 cent bid.


FWIW, I've seen many more ISLD bids and offers (outside the market) get picked off at a bad time , especially after hours, than benefit by some mistake.

If you are trading with the pointer of your mouse, and not paying attention to price, than that's the problem. If clowns want to put sitting duck bids and offers on ISLD, then I have no problem with that, hopefully I will eat thier lunch a few times a year.

But, they will eat yours, 95 out of 100 times ...

 

[JWKirkland]

Originally posted by thetraderprofit
I fell for it to the tune of $20k one day.

Ouch! That would be a trade I would definitely try and bust.

TraderProfit, did you try and bust it and how did it end up?

JWK

 

[hmap1]

My favorite time is trading our systems during holiday weeks. Thats when the traders go on vacation and leave the desk to their junior guys who make mistakes left and right. The best part is that they usually try to sweep those mistakes under the carpet so they won't get in trouble.

 

[Hitnruntrader]

Please read the very first post on this thread. I don't think you understand the whole story. I was the person who originally was thinking about asking to get the trade busted. How could someone else possibly ask for a bust when at the time the price they received was a point better than the current market?

 

[nitro]

Originally posted by NYSE Trader
I see this happen about once a week: the specialist's clerk makes a typing error that looks like the market has been spread by $1 on the bid or ask...eg, 26.15 X 26.20 temporarily becomes 26.15 X 27.20, then quickly returns to the previous quote...you know its probably an error because it changes by exactly one dollar.

On the island side, I got caught for $500 one time by clicking on a listed island offer not realizing it was one dollar above the nyse offer--ouch! I was mad for a couple days, but I realized that its my responsiblity to check the price before commiting to a trade...as much as I wanted to label the island seller a crook, I realize that trading is war...what he or she did was tricky, but not wrong.

Darryl

This exact thing happened to me in FNM - sigh....

nitro

 

[jaan]

Originally posted by Hitnruntrader
Please read the very first post on this thread. I don't think you understand the whole story. I was the person who originally was thinking about asking to get the trade busted.

sure, but as i understand, by that you initiated the process that, at some point, involved ISLD calling the other sides of the trade, asking them for a bust. do a search on this board -- many traders here have gotten such call.

also, i don't think you can rule out the possibility of the other side trying to bust the trade as "clearly erroneous", too (after seeing it move away from them).

- jaan

edit: ah, ok, you mean that you didn't officially ask for a bust? then it either was a miscommunication or the seller bustin the trade.

 

[hmap1]

I'm not sure if it was covered on this thread, but Island has a "Clearly Erroneous" policy on their site that clearly states their definitions of "Erroneous". I rarely bust a trade, but get at least 3 filed against me from the contra party on a daily basis. Island is smart having a "pass-through" rule to help limit filings, but I wish they renegotiated price in a bust attempt by the contra party like INCA and BRUT. But I must say that they are the few ECN's that actually define the rules to "Erroneous", unlike BRUT who's lawyers don't bust by any rule publushed. To them, they have a general rule when deciding to bust a trade, but I have had 10% out of markets stand and on other days get busted under 3% out. It all depends on the weather with them. If I am late to commnt on different matters, please excuse me.

 

[redzuk]

Originally posted by jaan
ah, ok, you mean that you didn't officially ask for a bust? then it either was a miscommunication or the seller bustin the trade.

I think thats the point. Seller busted the trade a couple hours later, after losing the 1 point edge.