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Strategies & Market Trends : Trading For A Living -- Ignore unavailable to you. Want to Upgrade?

To: dpl who wrote (1575)	4/18/1999 12:41:00 PM
From: Eric P	Respond to of 1729

Maybe someone can explain why I see trades below the lowest bid of the day and above the highest ask of the day. This is a result of the steps traders will take in the effort to get their order filled. => They will preference a market maker or ECN to buy stock one or more levels above the inside ask. Conversely, if they are eager to sell stock, they will place an order to sell stock at one or more levels below the inside bid price. If the stock were then to stop and reverse in the other direction, these trades outside the market could become the high or low price of the day, even though the inside bid/ask never reached this price. Returning to the advantages/disadvantages of using a discount broker versus a daytrading broker... Your post mentioned one potential advantage for using discount brokers: The possibility of price improvement. You mentioned placing a limit order to sell INTC at 57.75 and getting half filled at 3/4 and half filled at 7/8. This is something that you would never get if your limit order was posted on an ECN. => Quite an advantage if it happens with any frequency. However, I would also be very interested in hearing from someone that uses a discount broker to place market orders to take advantage of the autoexecution systems of the market makers to get quick fills in active stocks at the inside bid or ask. Has anyone got experience using discount brokers in this way? How do they perform? Quick fills, slow fills which lose several levels? -Eric