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

To: cloudless who wrote (5540)	11/21/1999 8:48:00 AM
From: TraderAlan	Read Replies (2) \| Respond to of 18137

cloudless, Discount brokers work with market makers on payment for order flow arrangements. This places a different set of duties on the MM than a trader dealing with a direct system. You place an marketable exit order at a discount house, the MM has to fill you although perhaps not at the price you'd like. There is no legal obligation other than restrictive SOES rules in a transaction that you place through CyberLimit. SNet can be ignored by market makers and you can't fill an ECN order without a matching customer. Direct access is a tradeoff of speed for availability. As E Davies has posted here recently, some of his executions have been better on Brown and Co than Cyber. Alan