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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Bob Rudd who wrote (5772)	1/13/1999 4:46:00 PM
From: peter michaelson	Read Replies (1) \| Respond to of 78644

RealTick software shows you active quotes and market maker bids in realtime and by a single click of the mouse you can execute an order which hits the marketmaker screens immediately. mbtrader.com Bob, it sounds like your broker's software doesn't allow a limit bid above the current price, which is really bad software. They don't all do that. (I have had accounts at 6 on-line brokers) Nevertheless, on fast movers such as AMZN, all rules are off. Market orders with web brokers can take 15 minutes to execute. Even on the phone, sometimes the firm's own in-house software slows executions, or the market maker to which the firm sells its order flow is overwhelmed or intentionally not executing. In fact, the slow executions of market orders are a scandal on fast moving stocks. The normal NASDAQ rules regarding the MM's obligation to execute in a timely fashion are relaxed when a stock is declared fast-moving. MM's, who are supposed to provide liquidity, stop executing, collect inventory of a stock, and sell it to you only after the price has risen. If it's not higher, they don't sell, and therefore the price rises. Collusion among MM's is not a myth, as recent settlements attest. In any case, I am sure that most people did not have their limit orders executed at this morning's prices. Simply not enough supply, which is why the prices went back up so quickly. For more coherent discussion on this stuff, a couple of threads are useful. Subject 19037 Subject 16961 And, as this subject does not pertain well to Value Investing, I shall post no more forever (on this topic). Sorry All. Peter