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Soes stands for Small Order Execution System. It was implemented after the
1987 Crash in order to insure that small investors are able to fairley compete
when buying or selling stocks on NASDAQ, especially in severe market
conditions when liquidity may start drying up. Essentially, a customer with
an order (1000 shares or less) is eligible to have his broker use SOES in
order to obtain an almost instantaneous execution at the best bid/ask. In my
opinion, when used for its intended purpose, SOES is a great tool for the
small investor. On the flip side, when SOES is used by individuals who do
nothing but trade for a living (professionals) I feel that the system
actually hurts the truly small investor due to the added volitility it may
create. In any case, whether you are a small investor or you trade for a
living from home SOES is definately a valuable tool, especially if you like to
dash in and out of markets.
Hope this was helpfull
RIch Z
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