DAYTRADING Fundamentals Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : DAYTRADING Fundamentals

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Duane who wrote (304)	6/8/1999 4:06:00 PM
From: Eric P	Read Replies (2) of 18137

One of my rules in trading is... Stay away from Penny Stocks! Therefore, I don't have any real experience with them, but I'll tell you what I think is going on. It sounds as though market makers are not required to post customer orders on penny stocks. The customer will only get a fill when his/her bid price matches the best ask price on the stock, virtually guaranteeing the market maker a risk-free profit on the trade. This is the way it was for all of Nasdaq before the "Limit Order Display Rule" took effect ~2 years ago. This new rule requires that for all customer orders which improve the market makers inside bid or ask price, the market maker must either fill the order or modify their posted quote to reflect the customer order within 30 seconds of receiving the order. This has reduced the ease with which market makers can screw customer orders on Nasdaq stocks. It sounds like no such rule exists for pennies. -Eric

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next