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Strategies & Market Trends : From the Trading Desk -- Ignore unavailable to you. Want to Upgrade?

To: LPS5 who wrote (4579)	6/17/1999 3:07:00 PM
From: Tom DuBois	Read Replies (4) \| Respond to of 4969

I have asked this question of 3 Waterhouse folks and gotten a different answer each time. Can anyone help sort it out? Can I daytrade in excess of my listed margin "buying power". I've been told: 1. NO...you can get a 90 freeze for daytrading over your limit 2. Yes...but be sure to close out by day's end before your account is updated 3. Yes...trade as much as you want...only risk is a house or fed margin call I'm assuming there is a SEC rule involved not just Waterhouse company policy. Any help?/ Tom

To: LPS5 who wrote (4579)	6/20/1999 6:59:00 AM
From: steve goldman	Respond to of 4969

LPS5, i think you did a great job handling that question, the only thing I would add as that since you don't have a centralized marketplace, a single entity responsible for displaying/making the market in a stock, you don't have per se standing in print order. That is you could see yourself on the bid and could see a ton of prints, trades at the bid yet never be filled. Infact, a market maker could trade below the bid and you'd still not be filled. Example: you are sole bidder at 10 1/4, offer 10 1/2. Your bid is represented by ISLD, an ECN> Yet MASH, a very competitive market maker is matching the inside market for its clients, who want to sell. Matching the inside market? they will agree with firms to fill client sell orders at inside bid at 10 1/4. Hence you bid is establishing the price at which other sell orders get completed at, yet you dont get filled. I would say that MOST trades occur away from actual bidders, with the exception of ECNS. MASH does some tremendous volume, so does NITE, perhaps 10, 15% of the NASD, and while they are active on the bid ask, they arent there 10% of the time. Most trades they do are matching trades. ON the nYSE, if you were on the bid for 1000, had 500 filled, and saw lots of prints on the NYSE, (On the NYSE being the key), you'd virtually be guaranteed a fill. Regards, steve@yamner.com