Hello traders,

I just shorted 5 (five) pieces of BDX, as suggested by the PnF/RSI system. (Do you think I diversify enough? ) I wanted to know if I really can submit an order for less than 100 pieces. Sure I can, serious slippage, though... I wonder what difficulties I will have, when I want to liquidate this position...

Anyway, I looked at the bids and asks of this stock, and found the following:

      BID                  ASK

Price Size Time      Price Size Time

49.81 1000 10:35:11  51.63 1000 10:35:11

49.80 1000 10:35:13  51.62 1000 10:35:13

then these are cancelled, and the new one:

      BID                  ASK

Price Size Time      Price Size Time

49.96 2000 11:35:20  51.78 2000 11:35:22

I guess there is one person behind these orders. If so, why would someone do that? Any effects on price?

Have a good day!
Akos

Akos,

I don't know what a "piece" is, so you're going to have to help me on that one. Is it the same as a "share"? If so, sure you can trade less than 100 shares. And in a liquid stock, the slippage shouldn't be that great, but commissions start becoming more significant. I don't know where you're getting those huge spreads. As I type this, I show BDX at 50.82 bid/50.85 asked.

Larry

Larry, thanks! a piece is a share.. Yes, now I remember what you call an "odd lot". I was just confused because I got the info on most of the stocks, that minimum order qty is 100 shares, increment is 100 shares.. But that was not the issue, the post was about the spread really.

Yes, youre right, the "best", or closest bids and asks are that. I had a look at all the bids/asks (at http://datasvr.tradearca.com/arcadataserver/JArcaBook.php), and there I found these. Now do you know what I mean?
Why would someone bid and at the same time ask a stock with so big spread? So wide spread, I would think he is careful not to be filled on either.

Akos,

I don't know. I never pay any attention at all to those screens. Some of it can be expained by orders that have been up for awhile and just haven't been cancelled. Also, I do know that they know people watch the activity, so they'll just stick a bid or asked up that they know is far away from the market just to see if they can influence the order flow a little. I'm not saying that's what's going on in this case, but I do know that it happens a lot.

Larry