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.

Non-Tech : Meet Gene, a NASDAQ Market Maker -- Ignore unavailable to you. Want to Upgrade?

To: compradun who wrote (1113)	9/27/2000 9:57:29 PM
From: gene_the_mm	Read Replies (2) \| Respond to of 1426

COMPRADUN... One of my first decisions with preference orders is to MOVE out of the way to prevent 'dual liability' (which is when you are SOES'ed for your displayed size AND you have a SELECTNET preference liability. This would explain why MM's will print you after they move (this could be one of many different reasons). The reason an MM fills you for more than his displayed size is that sometimes MM's choose not to 'show their hand'. That is to say, they probably have a position but rather than display 10,000 shares that they would like to sell they only display 500 or 1000. When you bid them for 2000 shares and they fill you this scenario might apply. Don't forget... MM's are competing against daytraders, retail investors, other MM's AND big institutions. If some of these MM's showed some of their positions or orders they would never be able to get their large customers (institutions, hedge funds, 401K plans, etc..) the best prices and momentum players would simply 'run ahead' of them all day. SELECTNET preference orders, whether liable or not, will stay live for 3 minutes unless otherwise set by the trader. Thus, while the MM may not be liable to fill you he can execute your order (if you choose to leave it live with him) at any point during that 3 minute lifespan. For the most part, I rarely see a SELECTNET order stay live for longer than 20 to 30 seconds at MOST these days. For all of you daytraders this is the best idea (leaving it live for no longer than 30 seconds). I hope that helps. All the best, -- Gene