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Non-Tech : Fight The Power! -Your Broker Just Screwed U - Now What? -- Ignore unavailable to you. Want to Upgrade?

To: WhipsawMcGraw who wrote (93)	12/8/1998 10:28:00 AM
From: Eric P	Read Replies (2) \| Respond to of 323

My point is that do not complain if you are not placing market orders. Whipsaw: You may not like limit orders, and they may not be the best kind of orders for a trader to place in certain situations. However, if a limit order is placed, a trader has a right to have his/her limit order displayed. In the case of CanyonGirl, she placed a limit buy at 48 1/8. Immediately, she saw her market maker (NITE) come to the bid at 48 1/8 on her behalf. Several minutes later, however, NITE dropped their quote to 48. At this point, the inside bid was apparently at 48, while CanyonGirl's limit buy order was not represented at her 48 1/8 bid. Meanwhile, several trades are filled at 48. ==> Two people got screwed in this example: CanyonGirl did not get a fill, and some poor sap who sold his/her stock at 48 when CanyonGirl was willing to pay 48 1/8. You can bet that the market maker was the one that profited at their expense. Note: I am not suggesting that CanyonGirl would have been filled if her order was properly represented at 48 1/8. It is very possible that the market makers would have executed those other fills at 48 1/8 versus 48. However, lacking representation in the market, CanyonGirl's order did not have any chance of being filled. -Eric