Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Jon Tara who wrote (7479)	3/16/2000 6:03:00 PM
From: Dan Duchardt	Respond to of 18137

Jon, Subscriber only allows you to post quotes on ISLD that would lock or cross the market if they were sent on to Nasdaq. Such orders not designated subscriber only are rejected. Suppose you are willing to pay more than the best offer on a stock that is moving up, and you think you cannot get filled at the best offer. You can try SelectNet preference to an MM, but there are no guaranteed fills before the market runs away from you. By placing a bid on ISLD at the higher price, you get first in line in the ISLD book, even though Nasdaq does not represent your bid to the rest of the market. Anyone who tries to hit ISLD to sell at the best ISLD bid showing on level2, or to offer stock at a price below your "invisible" bid will in fact take out your order instead. They will be happy because they got an instant fill, possibly at better price than they thought, and you will be happy because you got your buy. Dan

To: Jon Tara who wrote (7479)	3/16/2000 6:03:00 PM
From: Dustin	Read Replies (1) \| Respond to of 18137

Jon, the advantage to a subscriber only Island order is that your order will usually not affect a stock. Example...Let's say you want to sell 500 KEYN (not very liquid) with Island. If you make the best ask, you run the risk of making some weak hands hit the sell button. Also, a MM may decide to step in front of you so you can't get a fill. If the stock was in a delicate balance, you may have just forced the stock lower. With a S-Only Island order, your order does not appear on the L2 screen, only the Island book. It just allows you to hide. I use Cybercorp, and can not speak for other brokers, but there is another aspect. If you want to cross the market with Island, you must use a S-Only order. Cyber automatically does it for you. Without the S-Only, you could not cross the market. Hope that helps.