Hidden Orders

MktLook · 1 Hidden Orders Wed Aug 17, 2011 3:30 pm

MktLook

Stock Trader

Posts : 9
Equity Stars : 4738
Reputation : 0
Join date : 2011-05-30
Age : 33

Why sec allow to place hidden orders? Buy or Sell? This doesn't shows the real demand
of a share? Is it injustice? Pls tell me is an individual can pace a hidden orders?

Thanks in advance

maalinda · 2 Re: Hidden Orders Wed Aug 17, 2011 3:35 pm

maalinda

Manager - Equity Analytics

Posts : 254
Equity Stars : 5149
Reputation : 15
Join date : 2011-01-27

few years ago i know some big brokers used hidden orders.. dont know about now.

charith82 · 3 Re: Hidden Orders Wed Aug 17, 2011 3:49 pm

charith82

Manager - Equity Analytics

Posts : 114
Equity Stars : 4814
Reputation : 8
Join date : 2011-07-22

With current online trading systems any one can put an order with disclose quantity option. with that option user can decide what is the quantity need to show to public in his order. eg:- some one can put 1000 shares buy order setting disclose quantity to 200. then In order book it shows as 200.

maalinda · 4 Re: Hidden Orders Wed Aug 17, 2011 3:59 pm

maalinda

Manager - Equity Analytics

Posts : 254
Equity Stars : 5149
Reputation : 15
Join date : 2011-01-27

charith82 wrote:With current online trading systems any one can put an order with disclose quantity option. with that option user can decide what is the quantity need to show to public in his order. eg:- some one can put 1000 shares buy order setting disclose quantity to 200. then In order book it shows as 200.

are you serious ? if it is that misguided everyone. Not a good way i guess

charith82 · 5 Re: Hidden Orders Wed Aug 17, 2011 4:25 pm

charith82

Manager - Equity Analytics

Posts : 114
Equity Stars : 4814
Reputation : 8
Join date : 2011-07-22

Sorry There is a mistake. Order book will not effect with Disclosed quantity feature. the correct definition of the disclosed quantity as follows
http://www.inclusiveplanet.com/en/channelpost/703455

Dileepa · 6 Re: Hidden Orders Wed Aug 17, 2011 4:36 pm

Dileepa

Senior Manager - Equity Analytics

Posts : 346
Equity Stars : 6244
Reputation : 44
Join date : 2011-03-21
Location : Tokyo

maalinda wrote:

charith82 wrote:With current online trading systems any one can put an order with disclose quantity option. with that option user can decide what is the quantity need to show to public in his order. eg:- some one can put 1000 shares buy order setting disclose quantity to 200. then In order book it shows as 200.

are you serious ? if it is that misguided everyone. Not a good way i guess

When you placing an order from directFN you have the option to set disclosed quantity.
Some might argue it is misguiding, but it is there to prevent artificial price hikes.

Imaging you place a huge buy order of a particular share.
Other small buyers have to wait till your order is filled or they have to bid higher than yours.
In general, if a small buyer saw a buy order of 1M @ Rs.50 he/she will bid @ 50.10.
Eventually when someone place a large buy order share price will go up.
If it is a large sell order the price will go further down, which is not favorable for the market.

maalinda · 7 Re: Hidden Orders Wed Aug 17, 2011 6:31 pm

maalinda

Manager - Equity Analytics

Posts : 254
Equity Stars : 5149
Reputation : 15
Join date : 2011-01-27

charith and dileepa with the link charith gave and dileepa's explanation gives a good idea about the scenario.

Thank you.

smallville · 8 Re: Hidden Orders Wed Aug 17, 2011 6:42 pm

smallville

Associate Director - Equity Analytics

Posts : 4119
Equity Stars : 10100
Reputation : 530
Join date : 2011-02-03
Location : Back on Earth

So it means if u put a order for 1000 shares @ 50 and make the disclosed quantity to 200, only the first 200 gets executed in first attempt.. If anyone have other orders placed, say 700@50 it will get executed next and again your next 200 will be in display until the entire 1000 is done?????

ha_na · 9 Re: Hidden Orders Wed Aug 17, 2011 6:54 pm

ha_na

Manager - Equity Analytics

Posts : 117
Equity Stars : 4949
Reputation : 20
Join date : 2011-03-30
Age : 48

smallville wrote:So it means if u put a order for 1000 shares @ 50 and make the disclosed quantity to 200, only the first 200 gets executed in first attempt.. If anyone have other orders placed, say 700@50 it will get executed next and again your next 200 will be in display until the entire 1000 is done?????

I don't know this is good or bad but it was there for so long since start of online trading. maximum you can hide is the quarter the amount. say you have 1200 share you can sell 1200 but you disclose 300 at a time but your position in order book not change until 1200 sold or bought. I'm putting this buy and sell both because I trade big amount of shares.

charith82 · 10 Re: Hidden Orders Wed Aug 17, 2011 9:34 pm

charith82

Manager - Equity Analytics

Posts : 114
Equity Stars : 4814
Reputation : 8
Join date : 2011-07-22

ha_na is correct.IN sri lanka one can go up to 25% .some other counties its 10%. yes disclosed quantity is a feature of online trading systems. not only DFN iam using Atrad . iam pretty sure it is in all online systems. but iam still couldn't understand exactly what is the advantage of disclosed quantity.