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Hi Darryl,
> Has anybody else had this experience?
Sure, everybody has <g>! The main reason here, I believe, is the "uptick"
rule that allows to sell short at the market only after the price's gone
up. So if you have a good company of people trusting, as you do, that a
stock is to go down, you are actually in a bad company with your market
sell short order. Indeed, only those hurrying to close their LONG positions
will be served as long as the price is going down without a pause (of
course, you can also buy without limitations if you wish). They may drive
the price down so much that it would make you very unhappy when you
finally get your order executed. There is nobody to blame for it, so it's
acceptable (black humor on my part!). So, if your trading strategy makes
you concerned about 1-2 point losses, I would recommend watching the price
of a stock for 5-10 minutes (in real time) to make sure that it's stable
enough for next 1-2 minutes needed for your order to go through. Though
sometimes it doesn't help either. Also, I don't dare to place a market sell
short order overnight.
Cheers, Vitaly
Darryl D'Lima, MD wrote:
> Hi Jim,
>
> When you buy at the open, do you place an order overnight and how often
> do you get a reasonable price? I have always bought/sold at a specific
> price until recently when I placed an overnight order to sell short at
> the market open price. The stock did go down, based on the difference
> between the recorded opening and closing prices but my order was filled
> at a full 1.5 points (5% of the price) below the opening price. I use
> Datek and have always trusted them, but is this acceptable slippage?
>
> Has anybody else had this experience?
>
> Darryl
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