Just another way to save?
Splitting orders is much more than a simple cost saving. Rather than placing a single large trade, the pros spread their clients’ orders throughout the day to ensure they get the best possible prices.
Because you can now split orders cheaply with Trader Dealer, you too can spread your orders throughout the day, just like the pros.
The pros know that managing buy and sell orders onto the market is a proven way of increasing returns. The benefits include increased liquidity and lesser market impact. This is an important consideration when trading small cap and micro cap stocks.
Trading large numbers of small parcels is also important when day trading even the larger, highly liquid stocks.
Watch the depth
Trader Dealer allows you to sit off market and observe the market depth. When an order becomes available at your price, you can then take from the top in smaller parcels until you have the required amount.
Trader Dealer supports this approach by aggregating trades at up to 12 different price points in the one direction over a trading session and treating them as one trade. For smaller trades this means only one brokerage charge of $33.00.
An example:
The following is a comprehensive example of trade aggregation in practice:
| Time | Trade Description | Time | Trade Description |
|---|---|---|---|
| Total Value Bought | $196,937 | Total Value Sold | $197,817 |
| Gross Profit / Loss | $880 | Net Profit / Loss | $814 |
| 10:05am | Buy 1000 BHP @ $20.00 | 10:05am | |
| 10:15am | Buy 500 BHP @ $20.10 | 10:15am | |
| 10:30am | Buy 800 BHP @ $20.07 | 10:30am | |
| 10:46am | 10:46am | Sell 1200 BHP @ $20.20 | |
| 11:00am | 11:00am | Sell 800 BHP @ $20.18 | |
| 11:20am | 11:20am | Sell 300 BHP @ $20.15 | |
| 11:50am | Buy 1500 BHP @ $20.07 | 11:50am | |
| 12:03pm | Buy 1000 BHP @ $20.09 | 12:03pm | |
| 12:17pm | 12:17pm | Sell 1100 BHP @ $20.14 | |
| 12:40pm | 12:40pm | Sell 700 BHP @ $20.22 | |
| 1:10pm | Buy 800 BHP @ $20.17 | 1:10pm | |
| 1:22pm | 1:22pm | Sell 600 BHP @ $20.23 | |
| 1:35pm | 1:35pm | Sell 900 BHP @ $20.20 | |
| 1:45pm | Buy 1000 BHP @ $20.19 | 1:45pm | |
| 1:56pm | Buy 500 BHP @ $20.17 | 1:56pm | |
| 2:10pm | 2:10pm | Sell 1500 BHP @ $20.22 | |
| 2:38pm | Buy 1200 BHP @ $20.10 | 2:38pm | |
| 2:45pm | Buy 1500 BHP @ $20.07 | 2:45pm | |
| 3:10pm | 3:10pm | Sell 1300 BHP @ $20.14 | |
| 3:30pm | 3:30pm | Sell 400 BHP @ $20.15 | |
| 3:56pm | 3:56pm | Sell 1000 BHP @ $20.19 |
| Buy Contract Note: |
1000 @ $20.00 3800 @ $20.07 1000 @ $20.09 1700 @ $20.10 1300 @ $20.17 1000 @ $20.19 |
Sell Contract Note: |
2400 @ $20.14 700 @ $20.15 800 @ $20.18 1000 @ $20.19 2100 @ $20.20 2200 @ $20.22 600 @ $20.23 |
|---|
10 Buy orders were placed to market and executed. A total of 6 price levels were traded in BHP with a total traded value of $196,937. The total brokerage for the purchases of BHP is $33.
11 Sell orders were placed to market and executed. A total of 7 price levels were traded in BHP with a total trade value of $197,817. The total brokerage for the sales of BHP is $33.
Total Brokerage is $66 incl. GST.
Note that if the maximum of 12 price levels had been exceeded, the 13th and additional price levels would have been allocated to a second contract note and another $33 charged.
The same trading activity with an online broker with a low headline rate of $19.95 would cost $418.95 in brokerage yielding a net profit (after brokerage) of just $461.05!
