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

To: Gary Korn who wrote (6851)	3/27/1999 11:42:00 AM
From: Eric P	Read Replies (1) \| Respond to of 12617

Gary: There is no such thing as an ISLD market order. The Island is a limit order book which seeks to match up opposing limit orders. However, let's take a look at your example: Thus, assume I want to sell 1000 DELL at market. Assume also that it is trading at 62 bid by 62 1/16 ask. The ISLD order book has 300 bid at 62, 700 bid at 61 15/16, 1000 bid at 61 7/8 and 5000 bid at 61 13/16. You could place a limit order to sell 1000 shares at 61 15/16. If no one beats you to the orders on the book, you would be filled 300 shares at 62 and 700 shares at 61 15/16. However, just to be safe, you might decide instead to place a order to sell 1000 shares at 61 13/16. In this case, you would normally get the same exact fills (300 at 62 and 700 at 61 15/16). But, if someone were to beat you to the order at 62 and also take out 400 of the shares at 61 15/16, you would still get a full fill by getting the remaining 300 shares at 61 15/16 and 700 shares at 61 7/8. I am not recommending that it is always best to cross several levels to get a fill on ISLD. However, this would be the proper way to 'simulate' an ISLD market order. I hope this is clear. -Eric