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Strategies & Market Trends : The Final Frontier - Online Remote Trading -- Ignore unavailable to you. Want to Upgrade?

To: Eric P who wrote (2402)	1/14/1998 9:52:00 AM
From: steve goldman	Respond to of 12617

Re: How to trade that position: 1. Assuming it for a client since I can not use SOES for my own account**, I would setup SOES to buy 1000 at the market...I would then go out on Selectnet and bid 80 or 80 1/16 for the shares. Given it is only 1000, I know that if the market gets stronger while I am bidding inbetween, I can immediately hit the SOES machine for the 1000. I would not use ISLD or an ECN to make/"display" my bid as it takes a second or so longer to get an out/cancellation of the order, which I need before I can turn tothe soes. IN an active stock, the snet broadcast is as effective as ecn routing or other market display of your bid. I wouldn't screw around too much for the 1/16. The maximum more you will gain if you get it at 1/16 is $64. If the stock takes off and the SOES que gets too big, you might lose 1/4 or so...so I wouldn't wait till too long..maybe one or two mm's. I would probably also have out ISLD terminal ready to go with the 600 and soes with 400 since there is less of a que on ISLD. On soes, ifthe stock gets hot, you could be behind 15 other traders and each mm gets afew seconds to update their quote once traded against. I probably wouldnt even think about preferenceing snet to any mm except an ECN since they actually see the order and can decide to trade/not trade against it...if the stock is getting hot, they arent going to do the trade...they'll say "sold away", order ahead. ECNS though have an electronic system if they are selling and someone preferences them, it electronically accepts the order...pretty fast,so I might think about that instead of SOES...nonetheless, given how volatile the stock is and how fast it moves, I would have both SOES setup for 400 or possibly 1000, isld setup for 1000, maybe someone comes on for another 400, else I ge tthe 600 and the 400 cancels automatically, no worse off except I have to wait 1/2 second to seeif I got more than the 600 offered. and I would have soes setup for 400...if isld got taken out ahead of my trade, in about 1 second I can change the 600 to 1000. Hope you followed all that....I like the example as I have often said that given the various stocks, volatilities, executions systems etc. it is difficult to have one course of action. Regards, steve@yamner.com