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In a message dated 4/23/00 4:41:36 PM Pacific Daylight Time,
elangley@xxxxxxxxxxx writes:
> Island basically lets you trade with other day traders. But if a market
> maker is holding down the market you can get stuck in a position for the
> following reason;
>
> A market maker can post a price to sell at and basically ignore you for
> several minutes. That means that you have to "ask" someone with a higher
> price to sell to you. It is NOT automatic.
Huh? If you are talking about buying at a market maker's offer, most ISLD
brokers will not let you cross or lock the market. Why would you use ISLD for
that anyway? An order placed through Datek in that manner would not go
through ISLD, but through Selectnet. ISLD is arguably the most liquid ECN
there is.
> If there are no ISLAND offers to sell near the current bid/offer if can be
> very difficult to exit a position. Unlike say the E-mini that always has a
> bid/offer price that is valid and WILL execute.
I'm not aware of any brokers that use ISLD exclusively. If there are no ISLD
bids/offers on the inside, use Selectnet, SOES, or whatever.
> Just about all of the good day trading firms such as Cyber Corp (the one
> that i used) and most the the others such as Datek etc.. access ISLAND
>
> The market makers in the NYSE are concerned that if ISLAND can certify
> itself as an exchange (they want to) it can most certainly grab a good junk
> of volume from the NYSE.
My understanding is that some listed stocks are traded pre and post market on
ISLD.
> Take AOL. If AOL could trade on ISLAND I would imagine that most day
traders
> would do so. With SDOT (the current NYSE electronic system) you are
> basically blind.
>
> One thing that I like about ISLAND that could be used in the E-mini:
>
> Open Book - The open book allows you to see ALL of the limit and stop
orders
> that are resting outside the bid and ask.
> This kind of transparency would help the trader in e-mini's make sure
> that there are contracts available to buy or sell outside the current
> bid/ask.
I've never seen stop orders in the ISLD book.
> From what I hear this is being worked on for the e-mini.
>
> What I would give my left finger for though is to be able to have TS orders
> automatically execute on the e-mini contracts. That would eliminate the
> delays in manually
> entering order information when the price is getting away from your orginal
> signal price!
Careful what you wish for, they might be calling you "9 finger". If TS has
OLE or ActiveX, etc. somebody could cook up such a thing.
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