"Also, if you make an ISLD order on the inside bid and INCA (or some >other market maker) refreshes behind you, consider cancelling the >order. They are using you as a fodder wall to get a lower price, >hence the stock will usually roll down at least one tick before it >moves back up, if at all
What do you mean by this?"
First you see INCA on the inside Bid...
INTC
72 INCA 10 72 1/8 COWN 10
71 15/16 MSCO 10 72 3/16 DMGL 10
71 15/16 GSCO 10 72 3/16 MLCO 10
You ISLD in at 72...
72 INCA 10 72 1/8 COWN 10
72 ISLD 10 71 3/16 DMGL 10
71 15/16 MSCO 10
71 15/16 GSCO 10
Then you see this ...
72 ISLD 10 72 1/8 COWN 10
72 INCA 10
71 15/16 MSCO 10
71 15/16 GSCO 10
INCA has cancelled and refreshed to put you in front so you get hit while he plays around...if you get hit, he can bail and the price will drop to 71 15/16. If you don't get hit, he'll wait until you do, then cancel. He can't legally "back off," but he can use you, cancel, and get back in at a lower price...
I have played with INCA before where I cancel, then he cancels, then I cancel, then he cancels, until one of us wins. You don't want to be a loser in this situation unless you either want to be an investor or unless you want to lose 1/8th. |
