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Strategies & Market Trends : Market Gems:Stocks w/Strong Earnings and High Tech. Rank -- Ignore unavailable to you. Want to Upgrade?

To: lee kramer who wrote (65946)	10/13/1999 12:54:00 AM
From: Jenna	Read Replies (5) \| Respond to of 120523

Brown never tried them for shorts yet.. ARCA is good execution system especially for beginners. Its like a search engine for other execution systems for routing your bid. Lets say you want to buy NTOP at 56 7/16. It 'searches' the other ECN's for the best bid and offer and you can see this on the Level II screen. If no one is offering on ISLD then they look at INCA (Instinet) or whatever other ECN is available. Each offer is up for 25 or 30 seconds then the look for the next best offer. You can trade between the spread as well. If they can't find an ECN to accept your order at 56 7/16 they put it on their own ARCA ECN. You play your own market maker, even if you don't know exactly what is involved. Its automatic. The downside is that you can't cancel the order before the 25 or 30 seconds (at least that is what I was told).. but when you want to sell and you don't know where to route your order by yourself. So far I like ISLD the best (for my small experience) because when you bid on the stock the bid goes into the level II quotes and other traders can actually "SEE" your bid. If NTOP is offered at 56 1/4 by 56 3/4 you can stick in your offer at 56 7/16, the entire 'best bid' on level II changes to 56 7/16 X 56 3/4 and your bid is more attractive. Every trader who has access to ISLD will see your new bid and they could decide to fill it. Now lets say NTOP is rising very quickly and now its trading at 60 1/2 by 60 5/8.. If you want to get in you can't stand on ceremony so the first time you see a seller at 60 15/16 or 60 7/8 you just put that price in as your market order. Again only used for special stocks that move quickly. For scalpers you could go nuts but for the 4 or 5 trades I might make in a day and the longer holds its not bad.