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Another big problem with a partial fills on an ECN (depending on your
Broker) is that each re-submitted order that is partially filled generates
another commission charge. With one Broker I worked with, if your
subsequent fills (associated with the same original order) were filled at
the same price as the first fill (not likely - particularly in a fast
Market), there was no additional commission, but you had to call their
operations staff to arrange to have the additional commissions killed.
If later Fills were at different prices (most likely) you're charged a
separate commission on each. In other words, if your original commission
was to be $20 and it took 10 trades to fill your order, your total
commissions could be $200 on that one trade -- not to mention the additional
mounting losses as the head-fake that was set up by the MMs runs against you
and systematically cleans your clock...
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At 05:13 PM 8/27/98 -0700, you wrote:
>There are a couple of problems with using many of the ECNs. The
>first is that if you received a partial fill, the rest of the order was
>canceled and you had to resubmit the order. For example, imagine
>a fairly volatile market and you place your shares up for sale with
>an ECN timing the move perfectly only to have 100 of your 1000
>taken and now be holding 900 shares as the market moves against
>you. By the time you get out of the remaining 900 shares you might
>have lost a point or more. The second problem is that you tip your
>hand and may actually slow or stop the momentum of the move you
>are depending on to get out of your position.
>
>
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