|
|
|
|
|
|
|
Good-till-canceled orders. This order remains in effect until cancelled by the trader. |
|
|
|
|
|
|
|
|
Fill-or-kill order. This instructs the broker to fill the entire order immediately, or cancel the entire order. It does not allow a partial execution. |
|
|
|
|
|
|
|
|
Trading listed stocks is a much simpler proposition than trading Nasdaq stocks. Your direct access broker (of course you are using one by now!) will have arrangements for directly connecting to, and executing through, NYSE SuperDot as well as the various other exchanges. You simply look on the exchange screen (described later in this chapter) and select the exchange with the best price. Price movements are generally not as rapid or volatile as they are on the Nasdaq, so you submit your order and wait to see if you are executed. You usually don't know the name of the specialist firm but it just doesn't matter. |
|
|
|
|
|
|
|
|
Trading on the Nasdaq is much different. The market maker does matter, primarily in terms of liquidity. NITE or GSCO generally have a much bigger "appetite" for shares than SWST and MONT. Knowing that kind of information can make a big difference in your profitability. Because your goal is to get the number of shares you want at the very best possible price, it pays to understand which market makers will serve you best. |
|
|
|
|
|
|
|
|
The primary purpose of the market maker is to provide liquidity to the Nasdaq market, much as the specialist does on the NYSE. To maintain their market maker designation, they must be active in the market almost all of the time. That means that the market makers will "be there" to buy from you when you want to sell and to sell to you when you want to buy, providing that the price is marketable. Oh . . . did I mention? The market makers set the prices. They decide what a marketable price is. Cozy little arrangement, isn't it? |
|
|
|
|
|
|
|
|
Market makers earn their profit from the spread. They buy from you at one price, and they sell to you at a slightly higher price. Take a look |
|
|
|
|
|