What strategy you use if the trade is urgent and of high volume? A) VWAP B) IS C) ECN D) Broker E) None
ECN?
Vegas Wrote: ------------------------------------------------------- > What strategy you use if the trade is urgent and > of high volume? > > A) VWAP > B) IS > C) ECN > D) Broker > E) None F) Not enough info
ECN might not fill the whole trade, doesn’t sound like a match. I agree - F
skillionaire Wrote: ------------------------------------------------------- > Vegas Wrote: > -------------------------------------------------- > ----- > > What strategy you use if the trade is urgent > and > > of high volume? > > > > A) VWAP > > B) IS > > C) ECN > > D) Broker > > E) None > > > F) Not enough info What additional info you need? Or assume whatever you like. (this is a made up question…)
in the real world you would call a trading desk and do a principal transaction with either JPM, GS or MS.
So the answer is use a broker? Thanks.
IS good for: 1) urgency to trade is high 2) bid/ask spread is low 3) even intra-day trading voluming pattern fo the stock VWAP good for: 1) urgeny to trade is low 2) order size is small 3) bid/ask spread is low Brokers good for: 1) lot size is big 2) bid ask spread is large 3) market liquidity sux so based on these I would probably go with broker.
i would go with a principal trade. urgent trade can also imply sensitive stock information that needs to be traded on instantly … as volume is large, perhaps the principal is willing to take a large position (not ordinarily avbl in market) for a relatively biger commision. Still information value should outweigh the cost.
level3aspirant Wrote: ------------------------------------------------------- > i would go with a principal trade. urgent trade > can also imply sensitive stock information that > needs to be traded on instantly … as volume is > large, perhaps the principal is willing to take a > large position (not ordinarily avbl in market) for > a relatively biger commision. Still information > value should outweigh the cost. if you are an information trader…no broker wants to trade with you…let alone be the counterparty in a principal transaction…
Does crossing network work well for high urgency trade? How does daily volume pattern affect choice between VWAP and ISS? Thanks!
I think the only factor that affects the choice between IS and VWAP is the level of urgency. Any volume greater than 10% of adv means neither is useful.
IS if sending through algos. Best bet is probably principal trade.
Brokers.