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  • 2 Post By shri
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ppl selling small lots of shares - do you experience this a lot ?

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  1. #1

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    ppl selling small lots of shares - do you experience this a lot ?

    So I just scooped in a hundred stocks for a stock trading at under 100 US dollars and my order was filled by ppl selling 75/16/6/3 lots.
    I take it as a sign that there are many small investors having fun buying n selling these quantities and paying probably minimum of 3% in fees on top of that


  2. #2

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    Quote Originally Posted by Morrison
    So I just scooped in a hundred stocks for a stock trading at under 100 US dollars and my order was filled by ppl selling 75/16/6/3 lots.
    I take it as a sign that there are many small investors having fun buying n selling these quantities and paying probably minimum of 3% in fees on top of that
    Not everyone has a lot of money.

  3. #3

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    What you describe means you have almost certainly been "pennied" . People doing that do not pay "3% in fees". You may google the term for more info. It's something quite US specific.


  4. #4

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    Quote Originally Posted by jrkob
    What you describe means you have almost certainly been "pennied" . People doing that do not pay "3% in fees". You may google the term for more info. It's something quite US specific.
    In Go(ogle) we trust.

    All I get is penny stocks.

    Do you mean ppl testing the waters, trying to find out where buy orders are set ?

  5. #5

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    Not people - the vast majority of the transactions are algorithmic. In this case, I suspect what jrkob means is you got HFTed (a high frequency algorithm intercepted / whatevered / buggered around and someone out there made a few pennies on your order).

    Happens on the HK exchange too (try a low liquidity - ETF like 3140 for example) - here I suspect it is not HFT, just the exchange sweeping / collecting several sell & buy orders. Could be HFT is more evident in this case..

    Not as frequently as the US to be honest.

    And with HSBC it can get really annoying you get an SMS for every partial trade!

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  6. #6
    bdw
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    Well with Standard Chartered until February, if I wanted to trade shares I would often do in small lots many times a day the same stock depending on if it went up or down and just 1 or 2 cents difference could well cover my lunch cost for the day . But after February, they introduced minimum brokerage charge $50 so I can't do this anymore. Before it was all relative, my costs to trade were around 0.3% whether I bought $1k worth of shares or $100k worth of shares. But now there is a minimum and definitely works out lower costs to purchase in amounts of $25k or higher at a time.

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  7. #7

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    ya alot of these are algorithm driven transaction. doesn't need to be the HFT.. i.e. you can have a guy like HSBC trust or someone just receiving an order for 5mio USD worth of S&P, and if your stock is part of S&P then they will throw it into an algorithm that will execute small shares throughout the day. The commission charges is on aggregated amount for the day, not on a single ticket blot

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  8. #8

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    Quote Originally Posted by freeier
    Someone just receiving an order for 5mio USD worth of S&P, and if your stock is part of S&P then they will throw it into an algorithm that will execute small shares throughout the day. The commission charges is on aggregated amount for the day, not on a single ticket blot
    Yes, you're spot on with that too. Many of the new brokerages like Saxo offer all sorts of algorithmic order placement services.