Stocks & Commodities V. 22:11 (87): Q&A by Don Bright
Product Description
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.
ENTERING ORDERS
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.
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.
ENTERING ORDERS
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.
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