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

To: Saita who wrote (3924)	5/1/1998 2:05:00 PM
From: Dirk Hente	Read Replies (2) \| Respond to of 12617

Serguey, i dont fully understand your example, so I will use a different one: let's say, WXYZ is trading at 5 1/8 x 5 1/4. For example 1, assume the market changes to 5 1/16 x 1/4 so that the current bid is a down bid. Now, a legal short must be executed at 1/16th over the current bit, i.e. at 5 1/8 (or higher). For example 2, consider the case, when the bid changes from 1/8 to 1/16 and at the same time the ask is dropping to 3/32, i.e. WXYZ is trading at 5 2/32 x 5 3/32, the spread is now 1/32 and the current bid is again a down bid. In this case, according to the minimum increment rule, a legal short must be executed at 5 3/32 (or higher). I think as a customer of Datek, you dont have to care whether your short sale is a 'legal' one or not. Their trading/order/routing software is checking this for you and Datek is responsible for this.