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Traders Wait Until The Final Minutes To Execute Orders

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 Tim T., Vice President, Compliance at Allegiance Capital

 Thursday, August 1, 2013

Increasingly, traders are waiting until the final 15 minutes of the day to trade. Liquidity is more plentiful. Spreads are tighter. Volatility is lower compared with the open. Thus, trading is cheaper and liquidity at its highest.


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4 comments on article "Traders Wait Until The Final Minutes To Execute Orders"

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 Robert Kendall, Managing Director VPM Partners, LLC

 Saturday, August 3, 2013



I agree this one of worst times to trade. I spent years as floor trader/market maker and last 5 minutes of trade is often a air pocket low liquidity and aggressive traders with one goal to get the trades filled done. Best place for ultimate liquidity is pre-market on NYSE traded stocks to can get any size trade you want filled. The opening price has two hour auction period. We do a lot of trades during the pre-open as long as orders are 5 min prior to open all orders will be filled at opening price as long as they are qualified by a MOO or (market on open). Once trading begins the first minute up to five is similar to the last 5 minutes of trade liquidity can be thin. We have used this order placement for over 15 years for our EOD trading model which our models currently manage assets in excess of 20 billion. Slippage versus our models near zero. Back in late 80's we used the close to execute and trades fills sometimes were all over the place. The opening strategy has worked very well for our end of day models.


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 Nikolay Stoykov, Managing Member at Annapolis Fund

 Sunday, August 4, 2013



There is no "perfect" time to trade during the trading session. If your holding horizon is longer than 2-3 days, trading at the close is not a bad time to do it.Especially if we are talking about taking large positions.


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 David Greenberg, Board Member at 9/11 Tribute Center

 Sunday, August 4, 2013



In my days on the floor ,, the most important and most wild part of the day was the open and the close - The first and last 2 minutes of the day - Commodities are traded in a different way then stocks ..


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 David Greenberg, Board Member at 9/11 Tribute Center

 Sunday, August 4, 2013



I agree with Nik - if your long term out look it longer then a few minutes - being concerned of missing a few pips at any time is not worth it

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TRADING FUTURES AND OPTIONS INVOLVES SUBSTANTIAL RISK OF LOSS AND IS NOT SUITABLE FOR ALL INVESTORS
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