re: big buyers will have to move up probably toda
dlux...
As I understand it, there are 2 types of cross trades, perhaps someone out there can confirm this...
Type 1. Swapping accounts between the same broker. For example; person 'A' sells shares to person 'B', both of whom happen to use Etrade...this will result in a cross trade during the normal day to day trading process.
Type 2. Direct broker to broker transfer...typically executed through the market and not unlike off-market transfers. This is where we see "flag" bids, such as a single share placed into the queue. Generally these single orders are placed at the "transfer" price by either the buyer or the seller, through which the transfer is executed.
These are normally placed at the top of the queue, either on the bid or ask side, but on occassions I have also seen these "flags" placed 10 or more points below the prevailing price...then comes the transfer, wiping out all those above the "flag", plus the balance of the transfer at the flag price.
I remember one occassion where a "flag" bid was placed about 8 points below my buy order sitting in the market...LOL...I quickly pulled it just seconds before the transfer went through.
Cheers!
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