Replies to post #13724 on Alliance Creative Group Inc (ACGX)

[philg]

MMs often spread the wealth and only partially fill orders, plus that way the broker gets a commission. MMs do what they please.


>Can somebody explain this.... I put a limit order for "X" shares of IVIT, but it was only partially filled. Then, it started filling up others' orders for the same price afterwards, thereby leaving my order unfilled. How do MM's fill limit orders? Thanks

[Sccrbrg]

Next time try using an AON (All Or Nothing) limit order, so that all of your order gets filled.

On the other hand, none of your order could be filled for the specified price. But I personally haven't had too many issues with that.

[doc_]

Just adding to what philg said.

When an MM see's your order come in(they could even be wide the NBBO) they'll tell the broker that there's a customer order at x price for x shares. Unless you specify certain instruction such as AoN, the MM is at liberty to do what he wants regarding filling your order. In your specific case im guessing the MM was in the market, but the MM wanted the broker's shares and only gave you a partial fill.

For example:

Your order: B 1million IVIT .0005

Broker comes to the MM asks for MM's markets (wanting to sell 3 million shares)

MM could have showed:

.0005-.0006 2.75million up - Then he can tell the broker there's a customer order in for a 1mill at .0005. Let's split it so I (the MM) get 2.5 and customer gets half a million.

Broker: You did it.

and the trade is complete.