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 : SOES Trading -- Ignore unavailable to you. Want to Upgrade?

To: Darren who wrote (1424)	4/20/1998 2:36:00 PM
From: shag007	Read Replies (1) \| Respond to of 1618

Darren I think what cp is saying <<how often do soes traders sell short on down ticks?>> is that SOES traders often sell short against the box. And that does not help the market in general. legal? FDA

To: Darren who wrote (1424)	4/20/1998 7:26:00 PM
From: cp	Read Replies (2) \| Respond to of 1618

darren thanks for the info. i still believe that soes trading has made the mkt more volatile and has not provided much liquidity. the reason why spreads have tightened is because of the new order display rule. mainly instinet bids and offers displayed in nasdaq. mkt makers who are uninvolved in the stock (meaning they have no current orders) tend to keep their spreads extra wide as there are no longer any excess spread rules. from the beginning nasdaq should have given everybody excess to soes including mm's . that would have kept the playing field level . see you, cp

To: Darren who wrote (1424)	4/21/1998 1:37:00 AM
From: David E. Henry	Read Replies (1) \| Respond to of 1618

<<If the spread in a stock is 1/2, I can buy 1/16th above the Bid and sell 1/16th below the Ask all day long for a 3/8th gain.>> Really? Sounds great! But how realistic is actually doing this? Do you do this? A lot? Name some stocks and situation where you can do this and some situations where its almost impossible to do this. Dave