Avoid Odd Lot Trades

I didn’t bother to do the research on exactly how odd lot trades are handled, but one thing is for sure: they are handled separately and differently than regular trades.  I paid a small price for this lesson today.

I was exiting 50 shares of SPY at market.  I placed the order on tradestation’s Matrix interface.  For 15-20 long seconds I watched my market order marker move up and down with the “last” price but it didn’t get executed.  I started to sweat as the price moved against me each second it didn’t get executed.   It finally did 45 cents later.   I called trade execution and they told me it was an odd lot trade and anything could happen.

So market order odd lot trade — never again!  Limit order odd lot trade– may be (e.g. GOOG, AAPL, etc), but there’s a good chance the order won’t get filled during fast price movements.  It’s best to avoid odd lot trade all together.

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