Imported from previous forum
Can somebody shed some light on how tag 54=3/4 are used ? I am basically interested in finding out how 54=3 & 4 should be interpreted by OMS.
Any help is very much appriciated.
Regards
- Raj
Raj, please post this to the “General Q/A” forum.
Thanks, Jörg
Can somebody shed some light on how tag 54=3/4 are used ? I am basically
interested in finding out how 54=3 & 4 should be interpreted by OMS.Any help is very much appriciated.
Regards
- Raj
Can somebody shed some light on how tag 54=3/4 are used ? I am basically
interested in finding out how 54=3 & 4 should be interpreted by OMS.Any help is very much appriciated.
Regards
- Raj
First, some definitions:
Last Price - The most recent traded price of a security. For example, if MSFT(Microsoft) is currently priced at 31 @ 300 / 400 @ 31.5. 10 minutes ago, MSFT traded for 200 @ 31.20. The Last Price in this case is 31.20 and will remain that until another trade (at a different price) is done.
Tick - The smallest possible movement (up or down) in the price of a security. For example, the tick might be a nickel ($.05).
UpTick - A security traded at a price higher than the Last Price for the same security. For instance, if MSFT just printed at 34 one minute ago, if another trade is done at 34.10, this is an uptick.
Downtick - A security traded at a price lower than the Last Price for the same security. A Downtick is the opposite of an Uptick.
Zero-plus Tick - A price that is the same as the Last Price, but is greater than the most recent different price. For example, 10 minutes ago MSFT trades at 34.10. Five minutes ago MSFT trades at 34.15. That trade is an uptick. Finally another MSFT trade happens at 34.15 again. This third trade price is a zero-plus tick because although it’s equal to the last price, the previous different price was lower than the final traded price.
Zero-minus Tick - A price that is the same as the Last Price, but is less than the most recent different price. For example, 10 minutes ago MSFT trades at 34.15. Five minutes ago MSFT trades at 34.10. That trade is a downtick. Finally another MSFT trade happens at 34.10 again. This third trade price is a zero-plus tick because although it’s equal to the last price, the previous different price was higher than the final traded price.
So now let’s take a look at the following definition of a Buy Minus Order from http://investorwords.com:
An order to buy a specified amount of a stock if the price to be executed at is not higher than the price of the last trade if the last trade was a minus, and is not higher than the price of the last trade less the minimum change in the stock if the last trade was an uptick or zero-plus tick.
So if the last trade was a downtick, then if someone were to place a buy minus order, the order would only execute if the price was at or below the last print. For example, if the last price was a downtick at 35, the buy minus order would only execute at a price of 35 or lower.
Otherwise, if the last trade price was an uptick (or a zero-plus tick), then if someone were to place a buy minus order, the order would only execute if the price was at or below (last price - tick). If the last price was an uptick at 35 and the tick size is a nickel, the buy minus order would only execute at a price of 34.95 or lower.
Caveat: If the buy minus is a limit order, the buy cannot execute above the limit, regardless of tick.
Check out the definition of a Sell plus order and you will find a similar but opposite answer.