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

To: brec who wrote (8248)	5/5/2000 11:00:00 AM
From: LPS5	Read Replies (1) \| Respond to of 18137

Oh yeah, there are some that charge for each piece. LPS5

To: brec who wrote (8248)	5/5/2000 1:37:00 PM
From: Dan Clark	Read Replies (1) \| Respond to of 18137

Brec, The issue isn't getting 23 partial fills on the original order. That assumes that you get filled! The problem... In a fast moving stock you may get a partial fill and (assuming that the un-filled portion doesn't cancel) never get the remainder filled until the stock is moving back in the other direction. I.e., to get an adequate fill, you many need to cancel the unfilled portion and reenter the order. For example, you see MSFT and the market dropping for the last two hours. MSFT hits 70 (a nice support point) and the market turns around simultaneously. You leap all over it and enter a long buy for 300 MSFT on Island at the ask of 70 1/16. Of course the bigger sellers are backing away and you take out the ask for 12 shares at 70 1/16. (Ugh!) The next ask level at 70 1/8 drops away quickly and 20 seconds later, the bid/ask is 70 3/16 X 1/4 and more buyers are quickly stacking up. Also, INCA and the MoMos are backpeddling quickly also. OK, now you are stuck. Unless the price does a quick retracement, you are NOT going to get filled at 70 1/16. Since you want in bad, you cancel and replace your buy order at 70 1/4 for 288 shares. Your order fills and you take the ask at 70 1/4. In a fast moving market, this is common for me. Technically, this is NOT a partial fill situation. It is two separate orders. So how does the commission work out on this... With CyberCorp, it is ONE commission. With MBTrading, ABWatley and most of the other direct entry brokers that I'm aware of, this would involve TWO commissions. The last time I looked at MBTrading's website, they had announced that they were planning a "Cancel and Replace" function that would address this issue. Not as much flexibility as a "5-minute Fill Policy", but it's a step in the right direction. I'm hoping that SuperSOES will help resolve liquidity problems and partial fills, but I'm not holding my breath. :-) Regards, Dan.