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Trading with Less then 100 shares Lot
- Thread starter Tranbo
- Start date
Quote from Tranbo:
I'm looking for prop firm that allow sending shares in less then 100 shares lot for US Equity Market. Prefer Sterling Pro support but others trading platform will do.
Thanks
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Monthly Disciplinary Actions - June 2010
Member Firm Disciplined for Trading Violations
Fortis Clearing Americas LLC
Hearing Board Decision: 10-NYSE-08
09 Jun 2010
Summary Back to Top
Case Note
Violated NYSE Rules 476(a)(6) and 401(a) by introducing for execution odd-lot orders in a pattern of day-trading that was prohibited by NYSEâs policies; violated NYSE Rule 410A by failing to submit complete and accurate trading information through submission of Blue Sheets in response to requests for such information by NYSE Regulation; violated Section 17(a) of Securities Exchange Act of 1934, Rule 17a-3 thereunder, and NYSE Rule 440, by failing to make and maintain accurate records of purchases and sales of security in its books and records; violated NYSE Rule 342 by failing to reasonably supervise and implement adequate controls, including separate system of follow-up and review,
http://www.nyse.com/DiscAxn/discAxn_06_2010.html
Just a random google search, you can find more.
Don
So odd-lot daytrading is illegal? The SEC is saving us from the scourge of undercapitalized day trading? The 3-day day trading rule is stupid (the most you can lose as an illegal daytrader under this rule is $24,999 - big deal.)
Quote from billyjoerob:
So odd-lot daytrading is illegal? The SEC is saving us from the scourge of undercapitalized day trading? The 3-day day trading rule is stupid (the most you can lose as an illegal daytrader under this rule is $24,999 - big deal.)
You misunderstood. You can trade odd lots all you want in a retail account. Just not in a prop account.
No I caught that. Just seems futile, the regulating of it (the trading too). It seems strange that the SEC should bother with odd-lot/sub $25k accounts - what are they protecting them from? Blowing up? OK so they blow up a $5k account. So what? It's only $5k. They should be protecting the little old ladies with the $250k accounts, not the undercapitalized 15-25 yo's.
Quote from billyjoerob:
No I caught that. Just seems futile, the regulating of it (the trading too). It seems strange that the SEC should bother with odd-lot/sub $25k accounts - what are they protecting them from? Blowing up? OK so they blow up a $5k account. So what? It's only $5k. They should be protecting the little old ladies with the $250k accounts, not the undercapitalized 15-25 yo's.
Let me try again. When you have an account at a prop firm, it's not "your" account. It's a firm account that has millions of dollars in it. It's not 5k. That may be the amount of money you have in your "sub-account". But there is only one firm account and that firm account is the one that is regulated as it should be. Do you really want prop firms sending out one share lot orders to trigger stops and take your money? It's important here to understand the distinction between a firm account and a sub account. No sub account has a "name" on it. It's not "yours". And this is clearly stated in your operating agreement when you join a prop firm.
What is worse, blowing up $250k daytrading or blowing up $25K? But the SEC regulates the SMALLER account. What sense does that make? It's like regulating the local dry cleaners but leaving the chemical factory down by the river to pollute all it wants. I can see ML now - "Hey don't regulate our clients, they're big boys and girls - regulate the pikers at IB, they're driving theglobe.com to the moon!" Meanwhile, ML is blowing up accounts left and right.
Quote from billyjoerob:
What is worse, blowing up $250k daytrading or blowing up $25K? But the SEC regulates the SMALLER account. What sense does that make? It's like regulating the local dry cleaners but leaving the chemical factory down by the river to pollute all it wants. I can see ML now - "Hey don't regulate our clients, they're big boys and girls - regulate the pikers at IB, they're driving theglobe.com to the moon!" Meanwhile, ML is blowing up accounts left and right.
I'm doing a lousy job communicating this. Let me try again. The SEC is not regulating the 5k account. They are regulating Bright trading with the 50 million dollar account. Grandma is fine with her 5k account. She can trade all the odd lots she wants. There are no 5k accounts at prop firms. ZERO!!!!! You are trading a firm account. And that account has millions in it. And the SEC is not trying to protect you, they are trying to prevent market manipulation. Does it really make any sense to you for a 50 million dollar account to buy one share of stock? For what purpose? There can be only one. And that's to manipulate the market.
Mav, don't forget to mention that the odd lots have preferential treatment (in many cases) to the round lots - just to accomodate the "smaller" retail accouns - just so they can trade in smaller units which fit their account size.
FWIW,
Don
FWIW,
Don
Quote from Don Bright:
Mav, don't forget to mention that the odd lots have preferential treatment (in many cases) to the round lots - just to accomodate the "smaller" retail accouns - just so they can trade in smaller units which fit their account size.
FWIW,
Don
I actually did not even know that Don!