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

To: OZ who wrote (5958)	12/10/1999 8:59:00 PM
From: cloudless	Read Replies (1) \| Respond to of 18137

But if a stock is about to tank and some sucker wants to take your offer, there is nothing stopping that. OZ, How do I do that? Today I entered a market order to short sell, figuring that ETRADE has to place a market order at whatever the bid is at that moment and that in the time it took me (through ETRADE) to put a limit order in I'd miss the downturn. It didn't occur to me that if the bid was 34 5/16 to put a limit in at 33. Should I have put it in at a limit?? Help me here... Cloudless

To: OZ who wrote (5958)	12/10/1999 9:02:00 PM
From: LPS5	Read Replies (2) \| Respond to of 18137

The difference is that short selling listed stocks is subject to the "uptick" rule, and short selling marginable OTC stocks (NASDAQ) is subject to the "bid test rule." The "uptick" rule for listed stocks says that a short sale must be executed either at a price higher than the previous price, OR at the same price as the last sale executed, if the sale prior to that was positive. In other words: 19 20 20 19 19 From 19 to 20 is an uptick (ok to SS); 20 to 20 is a zero plus tick (ok to SS); 20 to 19 is a downtick (no SS); 19 to 19 is a zero minus tick (no SS); The bid test rule says that if the spread is 1/16 or wider, the short sale must be executed at 1/16 or more above the present bid price. If the spread is less than 1/16, say, 1/32, the short sale can be executed AT the bid price. All of this, of course, assumes that there is no "affirmative determination," that which verifies that in some form (long sale, convertible tendered for conversion, bank escrow receipt) the stock is already in the possession of the seller. LPS5