Trading strategy trade, volume

AnalystForum

What strategy you use if the trade is urgent and of high volume?

A) VWAP
B) IS
C) ECN
D) Broker
E) None

Zestt

IS if sending through algos. Best bet is probably principal trade.



Edited 1 time(s). Last edit at Wednesday, June 2, 2010 at 07:02PM by 1morelevel.

Windjammer

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.

susana

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.

nannan66

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.

bkballa

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....)

Darien

in the real world you would call a trading desk and do a principal transaction with either JPM, GS or MS.

mcmc

So the answer is use a broker? Thanks.

PalacioHill

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