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Strategies & Market Trends : From the Trading Desk -- Ignore unavailable to you. Want to Upgrade?

To: bob wallace who wrote (4230)	2/21/1999 2:14:00 PM
From: steve goldman	Read Replies (2) \| Respond to of 4969

Bob, At most firms, I'd agree with your statement. Yet, there is a difference on limit orders at our firm because we work the order. Sure, some one at Yamner and elsewhere wont get anything less than their limit but 1) someone at a firm where they work the order could get better, an improvement and 2) at one firm where they dont work it , you might not get the trade off at all. ie...if a NYSE stock were to continuously downtick, with small ticks up, never cleaning out the offer, you might never get the listed short off as all the upticks were long limit sales, priority to your short sale...yet on the NASDAQ, the stock could tank, and ifyou had the low offer, as a result of you rfirm working the order, even the smallest print to your offer would get you filled, if they took your offer. Again, there is no order as important in having a firm work the orders as shorting stocks. Also, about limits vs. market orders - at a firm like ours, a client can feel comfortable to give a market order because some effort and care is put into each trade. Noone here makes markets against your trade so there is no conflict of interest. Yet, as that example showed, you still can get the lows for the day, thus Iusually suggest that people give me a low, or limit with some discretion. Stocks at 25...sell short 1000 ABCD MKT, but no lower than 1/2 or 5/8 from here. oe sell short 1000 ABCD 24 1/2 with 1/8 discretion. At most firms, clients probably cringe that this might be giving an open invitation to take it as low as possible...yet our clients hopefully understand our position. We dont make the market so the only thing we have to do is do well. REgards, Steve@yamner.com