Stocks & Commodities V. 22:11 (87): Q&A by Don Bright
SINCE YOU ASKED
Confused about some aspect of trading? Professional trader Don Bright of Bright Trading (www.stocktrading.com), an equity trading corporation, answers a few of your questions. To submit a question, post your question to our website at http://
Message-Boards.Traders.com. Answers will be posted there, and selected questions will appear in a future issue of S&C.
Q: If one wishes to enter orders (buying or selling) market-on-open and/or market-on-close, what is the best way to achieve this on the various US stock exchanges?
How do you manage this for large orders and/or in illiquid markets? Also, what are the mechanics for doing this? I believe the NYSE and AMEX accept
MOO/MOC (market on open/market on close) orders, but the Nasdaq does not.
Can you enter these orders fairly anonymously so as to avoid tipping your hand to the specialists/market makers? To be clear, I am trying to find a way of achieving the opening or closing price with minimal slippage. Thanks in advance for your insights on this. — CPTrader
A: Any person or institution can enter MOO or MOC orders either directly via SuperDot or through his/her/its brokerage. This will be relatively anonymous; generally just the broker’s “give-up” (acronym) shows up on the order.
As far as getting decent prices goes, it depends a lot on supply and demand on that particular day. Illiquid stocks will obviously move more than the blue chips when hit with large blocks.