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Strategies & Market Trends : DAYTRADING Fundamentals -- Ignore unavailable to you. Want to Upgrade?

To: Eric P who wrote (4581)	10/3/1999 10:44:00 AM
From: Leland Charon	Read Replies (2) \| Respond to of 18137

Eric, Do you or others on the thread have any success with Selectnet preferences? I for one have never had much luck with this. Have you ever heard of a system called AutoEx? There are a couple of market making firms that use this. The market makers will guarantee a fill of 1,000 shares (I think) at the best bid/offer even if they arn't on the inside. This would be great at time when a MM is only bidding or offering 100 shares. Leland

To: Eric P who wrote (4581)	10/3/1999 12:13:00 PM
From: Kimberly Lee	Read Replies (1) \| Respond to of 18137

Eric, I thought of a single limit order of 80 1/16 thur ARCA at first. But the problem comes in step 3 and 4 <<3) The market makers GSCO (100 shares), MLCO (1000 shares) and MSCO (300 shares) will each receive a preferenced SNET order. >> MLCO may only give you a token 200 at 80, telling you that other SNET orders ahead of you and filling the remaining 800 at 1/16. Goldman will be fine as he's only displaying size 1, and MS probably will give all 300 shares at 80. As well, there is a good chance that other less reputable mms may only fill you 100 shares at 80 and the remains at 1/16. In this scenario, you will likely end up getting 2400 shares at 80 and 2600 shares at 1/16. If you really, really want to pick up 5000 shares at once badly, I would agree that 1 ARCA order with limit at 1/16. But in most cases, it probably will save you a little without affecting the quantity of fill if you direct a 4600 shares at 80 thru ARCA and a simultaneous 400 at 1/16 to REDI. If speed is not very essential, I would probably split the 5000 block into 2000 and 3000: directing 2000 with a limit at 79 15/16 to the bid side thru ARCA and 3000 with a limit at 80 to the offer side. Chances are that you would be able to pick up at least 1000 shares at 15/16 In reality, this is an academic discussion for me because in real life, if I want to buy 5000 shares of INTC, I would just pick up the phone calling Robbie or Goldman and asking them to get me 5000 INTC between now and the next 5-10 minutes, leaving the precise entry pts at their discretion. I usually spend my time picking stocks and approximate entry/exit points, leaving the order entry and execution process entirely to the mms I work with.