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Strategies & Market Trends : Momentum Daytrading - Tricks of the Trade -- Ignore unavailable to you. Want to Upgrade?

To: Linda Kaplan who wrote (407)	1/26/1998 12:58:00 AM
From: Dave O.	Read Replies (1) \| Respond to of 2120

< Could you explain what INCA is and how you use it for buying and selling? > Linda, Most people are conditioned to buy at the ask from a MM (i.e. GSCO, MLCO, BEST, ...) and sell at the bid (again, back to a MM). But with INCA or ISLD you can essentially be just like a MM. By that I mean you can bid for shares and have your price reflected just like any of the MM's. Similarly, when it's time to sell you can offer your shares at the ask price. INCA costs an extra 1 1/2 cents per share ($15 per 1000 shares). Lets say your interested in stock XYZ and Level II shows: GSCO 46 1/8 10 SBSH 46 1/4 10 MSCO 46 1/8 10 RSSF 46 1/4 10 BEST 46 1/8 20 MLCO 46 1/8 10 You have 4 MM's bidding on shares and 2 offering. Looks like more buying pressure than sellers. You, as INCA, could step in and bid 46 3/16 which would become them best bid. Suppose you get filled and more buyers take out the 46 1/4's. If you wanted to make a quick 1/8 you could turn around and offer the shares at 46 5/16 on ISLD or INCA. The point being that you don't have to buy at the ask or sell at the bid. Dave