|
PureBytes Links
Trading Reference Links
|
They were supposed to change the system to reflect your bid or offer if it
was between the existing. Whether it has actually changed or not I couldn't
tell you. It used to be that they could trade around you all day long at 98
and 100 and you would never be filled. The market makers had no obligation
to trade on anything but their markets.
UG wrote:
> I think I understand why NASDAQ doesn't allow stop orders. As I
> understand it, on NYSE stocks, a stop order is given to a specialist who
> will then change it to a market order when the bid/ask gets to the stop
> price. Since NASDAQ has no floor, and hence no specialists, it can have
> no stop orders.
>
> How is this different than a limit order? Say the bid/ask on XYZ is
> 98/100. If I place a limit order for 99, what happens? Does the inside
> market change to 99/100 to reflect my new bid?
>
> In other words, how are the mechanics of a stop order different from a
> limit order?
>
> --
> ========================================================================
> Listen, three eyes, don't you try to outweird me, I get stranger things
> than you free with my breakfast cereal. Douglas Adams, spoken by Zaphod
> Beeblebrox
> http://www.unixgeek.com/cgi-bin/motd.pl - PGP email preferred
|