Hello JD,
This example seems nearly identical to the previous one.
Your example:
"You are trying to sell 1000 shares of Amazon and
THE LEVEL II WINDOW SHOWS: 125 BID BY 125 1/8 ASK
The Island book look like this
Bid **** Ask
$120 300 **** $122 600
$118 500 **** $123 1000
$117 1/4 600 **** $124 5000
This is what all programs allow you to do. You enter an Island order to sell 1000 shares at 117 for example. The Island book will start at the top of the book and fill you as following: 300 at 120, 500 at 118 and 200 at 117 1/4. You are OUT of your position. Cybertrader, however, will reject your order and says that you were locking the island book because your selling price is lower than the inside bid."
The important aspect to remember is that Island is an order matching system. When an order is submitted Island looks to match the order with those existing on the book. If a match is found, the order, or a portion thereof, will execute.
If no match is found, and the order is a Display order, AND would cross or lock the inside Level II quote the order would then be rejected.
So currently, if you were trying to execute against the Island book at levels that would cross or lock the inside Level II market there MUST be size (orders) existing on the Island book at or above your limit order price, if you are offering, or at or below your limit order price if you are bidding the stock.
CyBerBroker would attempt to get the execution for you exactly as you have described in this example. Again, the execution would take place only in the event that the shares were actually available at the time the order hits the book (this is very important in high volatility issues).
On another topic, the Top 10 and New Highs and Lows DO NOT, under normal conditions and with normal customer connection quality, lag behind "4 to 5 minutes", as you have asserted. Both of these modules are calculated directly from the Level II feed and the calculations are performed as fast as the feed is received from the quote provider and/or the markets themselves.
Updates for new highs and lows (http://www.cyber-corp.com/demo_hilo.html) occur in real-time as received from the feed. Updates to the Top Tens are staggered to update on six-second cycles. This is done in order to minimize the bandwidth (these use a VERY large amount) for the more mission critical modules. The exception to this is when a new stock makes its way into any of the lists (Top Ten Gainers, Top Ten Volume, or Top Ten Decliners). These updates are sent as they occur.
I hope I have been able to provide some clarity on these issues. I appreciate the opportunity to post.
Sincerely,
Mark K. Stryker
CEO
CyBerBroker, Inc.
cybercorp.com |
