>>>Do in-the-spread Waterhouse NASDAQ limit orders change the spread?<<<
Yes, you will be represented to the market. Waterhouse uses NITE,MASH and BTRD to accomplish this. Last week, I was scalping NOVL when it would sit still for a few minutes. Put in a buy at the bid, and as soon as it was confirmed, sell at the ask.
Expect a Reg T call if you do this too many times with the same name, the stupid computer thinks that you've exceeded your buying power. This requires a call to your rep to straighten out. It does not matter if you actually exceed your BP, just that the total buys, when added together exceed it. Assume 50k in BP, buy 1000 WXYZ at 20, sell at 21, buy 1000 again at 20 1/2, sell at 21 1/4, buy 1000 again at 21, sell at 20 1/2, and you will generate a Reg T call. I'm really fed up with getting 3 Reg T calls a week, and will be funding my Datek account.
Barb |
