Hi Robert D. Cohen, M.D.; Sure you can offer 2000 shares of XYZ at 10 1/8 when the best ISLD bid is 10 3/16 x 500.
Assuming nobody gets those delicious shares sold at the 3/16 before you, the resulting action will be that you will sell 500 shares at the 3/16, and will sell somewhere between 0 and 1500 more at the 1/8, depending on the ISLD size at the 1/8th.
My system is set up so that if I get a partial fill, it sends the order back again to fill the rest. So it is conceivable to me that you would only sell 500 shares, and the rest of your order would be killed in the above situation.
The great thing about ISLD is that if you are in a position that you have to get out of, (for instance, your mom calls you to dinner, or maybe the stock is ripping against you, or maybe somebody fired a weapon in the House of Representatives...) you can hit an out of the money ISLD bid or ask, and get an instantaneous, guaranteed fill. This is useful if the other market makers aren't honoring their quotes. (Maybe their quotes are stale, or the feed is slow, or they just don't want to lose money.)
At least that's the way it works for me. I use ISLD for the vast majority of my trades. Used it about 45 times today. But my observations are completely taken from using an ISLD direct connection. Maybe if you go through another way, there are other limitations.
-- Carl |
