From the Trading Desk 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 : From the Trading Desk

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: holland who wrote (4961)	10/28/2002 9:16:35 AM
From: LPS5	Read Replies (1) of 4969

A large order can essentially always be executed; you're more likely asking how much time it will take and/or directly (while usually inversely) correlated with that: what pricing concession you'll likely endure. Volume is, by far, not the sole determinant of the speed/quality at which a block trade can be executed. Among other factors influencing the quality and speed of the execution are the market price of the issue; the liquidity provision (average execution size and interest as determined by the profile of investor, retail vs. institutional, typically involved in the stock); how the volume is typically spaced throughout the day (somewhat evenly vs. lumped at the open or close); the existence of derivatives referencing it (options, warrants, convertibles); and, indeed, how close the issue is to an impending and possibly price-impacting event (earnings announcement, likely addition to an index, etc). These and other factors - including the basis of your relationship with the executing firm and your expression to the desk as to whether price or time is the more critical measure - will play a role in impacting the way your transaction is executed. LPS5

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next