Ok Mr Porter, I'm confused?
1) Are you suggesting we have a 'order-driven' system, that where everyone can take advantage of the fool who buys on market in thin market open. Or
2) A specializer method like that on Wall Street where the average investor pays more for a stock that the brokerage houses buy from a specialist?
See, I think the fool who bought NTL at market open deserved to pay the high price. When I put in my options low ball price, I was counting on the knee jerk method that most traders follow. I believe in the order driven system, but on open they should balance market orders... But that's what they did. But that only applies to opening.
Problem is that trade at $135.00 shouldn't ocurred in the first place. There are holes in any system. On Wall street, if I put an order in to buy NTL at the equivalent of $130.20 any and all, and the price drops below $130.00 What are my chances of getting that stock? In Canada, I would get it. But at the same time if I sell at market I have no guantee of what price I get.
With options in Canada you can't have an Order Driven system since it's thinner than stocks. Maybe they should have a range driven option system. Where you can buy an option only within a certain range. This give speculators a chance to buy, and gives the market a chance to react. When the max range is hit, that where it stays until the equity price moves. {And this can be expanded} But than again, there is no reason to put markets order in. No specialist should ever be involved in a trade ever. |
