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 : From the Trading Desk -- Ignore unavailable to you. Want to Upgrade?

To: sweez who wrote (2472)	1/30/1998 7:02:00 AM
From: steve goldman	Respond to of 4969

Sweez...take a look our site, www.yamner.com. We charge $35 forsimple soes or superdot market orders. For orders where we have to work the trade, and possibly get a price improvement, we ask for 2 cents more...so a 1000 might cost you $55 but if we saved you an 1/8, which is $125 on the 1000, you net out about $70 better (essentially the price improvement pays for the commission). This analysis makes a erroneous assumption, that you can get a price improvement on every trade, which is far from the truth. I would say that we probably average an improvement on 1 in 6, sometimes more, sometimes less. Depends on the stock...if you are selling six positions in a running bull move, you might improvements in 6 out of 6 and they might be big pieces. If you are selling in a tanking market, you might not get any price improvement. But more than price improvement, is the ability to ask a firm trader, "given all the execution systems you have at your fingertips, whatis the best way to get me the best price on the 1000 zyb i want to buy?" The ability for a trader, whether it be someone at my firm or another (although I think we are one of a handful left in the country that still maintain this approach - after all, most firms would rather charge $20 per trade and make the 1/8 on the1000), to work with various execution systems to get the best price is important. OFten on nasdaq stocks, we will setup the soes terminal to hit the offer, but work the stock on selectnet...perhaps it weakens and we get stock. perhaps it tanks and we totally backs away...but we setup the soes to try to protect the client. This is just one of many, many different ways a firm might work an order for a client, etc. Sorry for the self-serving post.....he asked. Regards, Steve@yamner.com