Stocks & Commodities V. 32:6 (31): Q&A by Don Bright
Product Description
Q&A by Don Bright
VOLUME AND OPENING-ONLY ORDER PRICES
Don, I have followed your posts on several web boards for many years, and I know that many traders at your company use strategies that include opening-only orders (OPG) and market-on-close (MOC) orders.
I’m about to share a strategy with a good friend and trader mate (who has my trust) that involves OPGs to open orders and MOCs to close orders. The aver-age daily volumes of the stocks that the strategy trades can be as low as 200,000. The maximum volume of orders we use is around 6,000 shares per stock and trade. Could there be a conflict in sharing that strategy in light of the execution quality and prices I will get after I shared that strategy? Could this kind of volume of an individual order in thinner stocks such as one that trades 200,000 per day on aver-age worsen my performance due to bad executions and worse prices I will get for my trades? I can imagine that each morn-ing, many traders at Bright Trading send OPG orders to the NYSE for lower-volume stocks. How do you handle that? Do you see a disadvantage? —Mario J.
Thanks for following the various web forums, and I hope you read this magazine as well! You can do a search on the STOCKS & COMMODITIES website at Traders.com for previous articles regarding opening-only orders (OPG) and market-on-close orders (MOC).
VOLUME AND OPENING-ONLY ORDER PRICES
Don, I have followed your posts on several web boards for many years, and I know that many traders at your company use strategies that include opening-only orders (OPG) and market-on-close (MOC) orders.
I’m about to share a strategy with a good friend and trader mate (who has my trust) that involves OPGs to open orders and MOCs to close orders. The aver-age daily volumes of the stocks that the strategy trades can be as low as 200,000. The maximum volume of orders we use is around 6,000 shares per stock and trade. Could there be a conflict in sharing that strategy in light of the execution quality and prices I will get after I shared that strategy? Could this kind of volume of an individual order in thinner stocks such as one that trades 200,000 per day on aver-age worsen my performance due to bad executions and worse prices I will get for my trades? I can imagine that each morn-ing, many traders at Bright Trading send OPG orders to the NYSE for lower-volume stocks. How do you handle that? Do you see a disadvantage? —Mario J.
Thanks for following the various web forums, and I hope you read this magazine as well! You can do a search on the STOCKS & COMMODITIES website at Traders.com for previous articles regarding opening-only orders (OPG) and market-on-close orders (MOC).
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