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 : Trading For A Living -- Ignore unavailable to you. Want to Upgrade?

To: Len who wrote (517)	6/24/1998 11:50:00 PM
From: Colin Cody	Read Replies (2) \| Respond to of 1729

Len, My point exactly i.e. "only if applicable". Mr. DUH, with his attitude deserves what he gets. Should get out of the Market until he gains a lot more experience and loses a know-it-all attitude - at least until he knows HALF if it (g) . BUT I disagree [if I understood what you said] about ORDER FLOW. To get order flow, by definition, the brokerage needs to be acting as your AGENT, not as a PRINCIPLE on your behalf. So if Datek trades as a Market Maker on a lot of NASDAQ and OTC stocks, fine, but there's no order flow payment there. Or is that what you were saying? (g) . BTW If I say to a Broker buy 100 MSFT at EXACTLY $104 5/8 then it makes no BAD difference, IMO, if the Broker happens to be getting a payment for order flow. . Actually there IS a difference, and that is that THE one MM will be getting the trade, even if he's not with the inside quote. Sometimes this allows you to accumulate in SIZE without taking out the inside quote. i.e. a BENEFIT for the individual investor!!! . Now, maybe you can help me out. What is Island exactly, and please explain what you meant in your last message about Island. and that's why some question why trades are still showing up this way. Island was supposed to get their broker/dealer number in October 1997, so it seems curious that this still goes on. Thanks! . Colin

To: Len who wrote (517)	6/25/1998 1:36:00 AM
From: Colin Cody	Read Replies (2) \| Respond to of 1729

Len or anybody: . I posted the following: I see my limit come into the box when I place an order and I get filled nearly immediately as soon as the inside quote reaches my limit Bid=my Buy or Ask=my Sell. . I see you posted that you too are getting filled this way. . My question is HOW ARE THE MMs MAKING ANY $$$? . Typical Example: today I placed a SELL of MSFT at $104 5/16. There was only ONE MM moving up the box showing this price (and it was my size too). So I "know" this was my limit order. When the ASK hit my price I got a partial. Now let's stop right here. The MM took my sell order to the box, and filled it WITHOUT first selling the stock at the Ask and then picking up mine from me at the Bid. So WHAT'S IN IT FOR HIM? . Then, somewhat amazingly, I got filled at 104 3/8ths (price improvement) even though I was willing to let it go at 104 5/16ths. Again, WHAT'S IN IT FOR THEM?? That could have been easy money for the MM, but he (apparently) made nothing on it? How do they "pay the bills" if they don't "make the spread" on every trade? . Colin