Nasdaq Change to Limit Orders ?

Naz

Experienced member
1,391 24
It doesn't bother me at all.As the Nasdaq changes so does the styles in which to trade it evolve.

We all thought it was the end of the world when they got rid of fractions.

Many yearn for the $200+ stocks to come back to trade in a style that fitted that scenario.

I've already changed my style to fit the Nasdaq as it is now,so this rule means nothing to me.
 
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a320

Established member
689 8
The smaller retail traders will probably adapt well :cool:
Its the Proprietary boys this will hit hard..in my day shaving was one of their core methods used + trying to spoof.. :confused:

Trading Gaps..DT/DB's PreDayHL's, Century/Decade numbers, fibs, Opening price support,hooks,breakouts,Ax shadows ect ect...these will always be there.. just now people have to be a little more cunning to nail Bid/Ask :cool:
As Naz points out there will be ways around this..or you could join the real money on the CME :cheesy: (sorry couldn't resist..) :eek:

CJ
 
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BBB

Experienced member
1,071 3
Naz has made a good point. Flexibility and adaptability is key in this job.
 

a320

Established member
689 8
BBB said:
[ FX - the last bastion of truly free markets.
. [/B]

Free un-manipulated markets :eek: now that would be something to think about :cheesy:


CJ
 
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BBB

Experienced member
1,071 3
a320 - valid point. The manipulation is mostly done by governments, and large banks. The key is to use their manipulation to your advantage. (Easier said than done - sorry to state the obvious).

Back to the thread - does anyone think that this new shaving rule will lead to wider spreads - thus more intraday volatility? Could that be a good thing?
 

TheBramble

Legendary member
8,394 1,170
BBB said:
Back to the thread - does anyone think that this new shaving rule will lead to wider spreads - thus more intraday volatility? Could that be a good thing?

Will it lead to wider spreads? I don't think so. The majority of traders using sub-penny were never trading at the inside market.

So the inside bid/ask (the spread) will not be much affected.

However, the depth may well be. There should now be more traders (and shares) at each full penny level than previously. So less individual trading levels with more support at each. I'm thinking this through as I'm responding - does this make sense?

Although I don't think wider spreads will result (as posited above), why would wider spreads lead to greater volatility? I would have thought the reverse was true.
 

BBB

Experienced member
1,071 3
Wider spreads could lead to higher volatility as more waiting orders will be touched resulting in greater price discovery. Thats one reason why markets with low liquidity can be prone to huge swings - because of criminal spreads made by the insiders (although this could be a bit chicken & egg).


You're right Bramble - I don't think the inside will be affected much either - but I could be wrong! Interested in others views thats all.
 

TheBramble

Legendary member
8,394 1,170
Just noticed on the demo DAE version, you still get filled at sub-penny points if you go at market.

You can also still place limit orders with sub-penny amounts.

Is this likely to be just because it's a demo version?
 

BBB

Experienced member
1,071 3
Probably. I demoed a Refco product the other day for futures. They had contracts that are no longer traded! (French Franc, D Mark, etc) How poor is that! And I thought they were a quality outfit.
 
 
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