Trading with Less then 100 shares Lot
- Thread starter Tranbo
- Start date
Who said anything about edge? Please quote the post. So we can see who is the one with hot air. Thanks!
Mav, I guess you don't read your own posts.
I take "preference" to mean some advantage, which usually implies edge.
Don Bright
Bright Trading, LLC
Registered: Oct 2001
Posts: 10556
01-07-11 11:22 AM
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
__________________
Don Bright (not an alias)
http://www.stocktrading.com
Edit/Delete ⢠Quote ⢠Complain
Maverick74
Registered: Mar 2002
Posts: 7524
01-07-11 11:24 AM
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!
I take "preference" to mean some advantage, which usually implies edge.
Don Bright
Bright Trading, LLC
Registered: Oct 2001
Posts: 10556
01-07-11 11:22 AM
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
__________________
Don Bright (not an alias)
http://www.stocktrading.com
Edit/Delete ⢠Quote ⢠Complain
Maverick74
Registered: Mar 2002
Posts: 7524
01-07-11 11:24 AM
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!
Preference can mean edge but not always. For example, retail orders have priority over professional orders in options, some think this is an edge. I don't, at least not anymore. I did not know that odd lot stock orders got preference and it's possible Don used the wrong word. In the old days, those orders had to pay higher fees so if there is a preference, they are paying for it.
It used to be that odd-lots (sub 100, that is) sent to the NYSE had to be filled on the next-print, at the cost of the specialist. The logic was that, while the specialist has the right to rip-off the 5k orders coming in, he shouldn't be able to ripoff grandma and her 5 shares of disney.
When the hybrid came in, I believe odd-lots were also filled at the next print, automatically via the spec's computer.
Recently, ~4 months ago, the NYSE began showing mixed lots on the T&S and the way it works now I believe odd-lots sent to the NYSE just go to the normal queue now, negating the advantage which used to exist.
When the hybrid came in, I believe odd-lots were also filled at the next print, automatically via the spec's computer.
Recently, ~4 months ago, the NYSE began showing mixed lots on the T&S and the way it works now I believe odd-lots sent to the NYSE just go to the normal queue now, negating the advantage which used to exist.
There used to be a strategy a while back where a trader could post an odd lot in the spread and you would be price improved by the specialist on the next N print as above. Way to play this, play large spread stocks like Y and MKL or ALX. Certain traders made a ton of money with this till compliance eventually said no more.
Unless Prop firm business model is counting on trader to blow up their account, using up the equity paying for commission and fees. The odd lot rule doesn't favor the traders. No wonder why, 98% traders failed and 2% succeed are the broker/owner of the firm or those with well capitalized.
Why would the prop trader have to place standard lot order and, as the same time, the same trader can place the odd lot in retail account?
Why would the prop trader have to place standard lot order and, as the same time, the same trader can place the odd lot in retail account?
FWIW - info on odd lots (not sure where this simple thread made a left turn, LOL. Special treatment was all I was referring to before, not an edge for my traders (or anyone else really, but some might read the bold print below that way).
⢠Quoting in Round Lots (CTA Rule)
--Odd lots will aggregate with other interest at price and will quote only if interest is at
least a round lot.
--Unquoted odd lot orders cannot cannot be traded through or establish priority andcannot
be a quote setter
--An order that established priority retains such priority even if it becomes an odd lot after
partial execution and is no longer quoted.
--Odd lots will not prevent a round lot from establishing priority except if aggregated odd
lots have priority quantity or odd lot is remainder of priority order.
--PRL interest will establish priority for the full displayable quantity of the order, not just
the quantity reflected in the published quote
⢠Allocation in Round Lots
--Priority allocation rounded up to whole round lot (as previously done)
--Parity allocation distributed by round lots.
⢠Executions less than a round lot will not print to tape (CTA Rule)
--Odd lot sized trades will not change the last sale
⢠Will not cause the filing/refilling of Buy- or Sell+ interest
⢠Will not elect STOP Orders
⢠Manual Trade Reports (including Open and Close) will only support entry and display in
lots. One template will allow entry in shares (G-Key)
⢠Open Book will have full aggregate quantity in shares of displayable interest including
non-quoted odd lot interest
⢠Transaction pricing for odd lot executions will now mirror round lot pricing. All odd lot
executions will return liquidity flags identical to the current round lot flags. In addition,
the odd lot liquidity flag (â9â) will no longer be active.
As I said, "things are changing" as well.
Don
⢠Quoting in Round Lots (CTA Rule)
--Odd lots will aggregate with other interest at price and will quote only if interest is at
least a round lot.
--Unquoted odd lot orders cannot cannot be traded through or establish priority andcannot
be a quote setter
--An order that established priority retains such priority even if it becomes an odd lot after
partial execution and is no longer quoted.
--Odd lots will not prevent a round lot from establishing priority except if aggregated odd
lots have priority quantity or odd lot is remainder of priority order.
--PRL interest will establish priority for the full displayable quantity of the order, not just
the quantity reflected in the published quote
⢠Allocation in Round Lots
--Priority allocation rounded up to whole round lot (as previously done)
--Parity allocation distributed by round lots.
⢠Executions less than a round lot will not print to tape (CTA Rule)
--Odd lot sized trades will not change the last sale
⢠Will not cause the filing/refilling of Buy- or Sell+ interest
⢠Will not elect STOP Orders
⢠Manual Trade Reports (including Open and Close) will only support entry and display in
lots. One template will allow entry in shares (G-Key)
⢠Open Book will have full aggregate quantity in shares of displayable interest including
non-quoted odd lot interest
⢠Transaction pricing for odd lot executions will now mirror round lot pricing. All odd lot
executions will return liquidity flags identical to the current round lot flags. In addition,
the odd lot liquidity flag (â9â) will no longer be active.
As I said, "things are changing" as well.
Don