Shorting a stock on SSR

[Donté 1]

When attempting to short a stock on Short Sale Restriction (SSR) within DAS, particularly when "shorting on bid" is prohibited", I'm unable to get a short marketable limit order filled. Any attempt to get a short limit order on the ask filled generally doesn't work when the price action is really moving.

What is the best way to get an order for a short filled *quickly* when the price action is moving fast and the stock is on SSR?

I appreciate your input, Team.

[KyleK29 258]

Are you getting the error message from DAS or is your order getting to the market and just not getting filled?

If it's the error message, you have to do SSR's with a bid+0.01. DAS automatically rejects anything else.

[Donté 1]

Thanks for weighing in on this, Kyle.  No - it's not an error message. When a stock is on SSR, I found that DAS rejected orders placed using the following hotkey script:

ROUTE=SMRTL;Share=XXX;ACCOUNT=XXXXXXXXX;Price=Bid-.10;TIF=DAY+;SELL=Send

When shorting on bid is prohibited, it looks like we're required to submit marketable limit orders on the Ask.  I switched to the following (entering share size within the montage window):

ROUTE=SMRTL;ACCOUNT=XXXXXXXXX;Price=Ask;TIF=DAY+;SELL=Send

Seems that this is the best way to get the order filled quickly when the price is moving fast and SSR is in effect.

Is this reasonable or is there a better way?

[schaeferjjay 2]

Along these lines, I just spoke with DAS support re: this issue.  I appreciate Kyle's input.  A helpful alternative.   It also seems ridiculous to me that DAS will require me to create a whole new set of "custom" hotkeys in the simulator that aren't required for the same action/order in the live version.

They have assured me that a marketable limit order to short an SSR stock in the live version- won't be accepted either.  

So... am I misunderstanding things?  I thought Andrew said today that his marketable limit orders to short an SSR stock are being converted by DAS into acceptable orders?

Here is my script if needed-

ROUTE=SMRTL;Share=100;Price=Bid-.10;TIF=DAY+;SELL=Send

 

[Donté 1]

Thanks for weighing in, schaeferjjay. As I naively understand it, when the price is falling, placing a marketable limit order at the Bid effectively becomes a market order. Under SSR, this is prohibited. However, an order placed on the Ask (or higher) does get filled.

I've been using the following hot key script successfully this week for shorting a stock under SSR:

ROUTE=SMRTL;Share=100;Price=Ask+0.01;TIF=DAY+;SELL=Send

the following has worked for me as well:

ROUTE=SMRTL;Share=100;Price=Ask;TIF=DAY+;SELL=Send

[schaeferjjay 2]

Thanks Donte.

Yes, your understanding is the same as mine.

The clarification I was looking for is in regards to the discussion Andrew had this week in the Chatroom about putting in a marketable limit order while a stock is on SSR.  Did I misunderstand or did he say that (in the live trading version of DAS) these marketable limit orders are actually converted to acceptable orders?  Perhaps I misheard him.  Perhaps he is entering his orders differently  after all, despite what I believe I heard.

If these marketable limit orders are being "converted" to acceptable orders in the live version of DAS- then DAS support is denying that orders are treated differently in the sim version.  I just would prefer not to create separate keys for my DAS sim and live version as Kyle has.  I'd rather not add that additional layer to my trading. 

So first perhaps someone from BBT staff might clarify how Andrew trades hotkey SSR scenarios in the live version.  Then either DAS can address this issue in the sim.  Or perhaps there's an "if then..." conditional script to address a marketable limit order acceptable entry in the case of SSR to convert the order to an acceptable one (bid +0.1)

[RTrader 20]

3 hours ago, Donté said:

Thanks for weighing in, schaeferjjay. As I naively understand it, when the price is falling, placing a marketable limit order at the Bid effectively becomes a market order. Under SSR, this is prohibited. However, an order placed on the Ask (or higher) does get filled.

I've been using the following hot key script successfully this week for shorting a stock under SSR:

ROUTE=SMRTL;Share=100;Price=Ask+0.01;TIF=DAY+;SELL=Send

the following has worked for me as well:

ROUTE=SMRTL;Share=100;Price=Ask;TIF=DAY+;SELL=Send

These work because you are placing a limit order at or above the ask. When the price bids back to those orders they get filled. You can also enter in limit orders on pullbacks to short or add them where you want to get short anywhere above the ask. When the stock goes back to those prices you get filled if the shorts are available.