Trading Large Amounts Relative to Daily Volume – Strategy

Investing / Others
1

Assuming you want to buy (or sell) a 6/7 figure worth of stocks. eg. SPIA on SIX with a cheap swiss broker.
What would be the best or near best strategy if you account for simplicity and do not want to overpay fees/spread etc?

Volume and spread on a typical trading day:

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The spread and volume are relative low.

Avoid start/end of the day and just buy/sell with market order? will the market maker provide an ‘acceptable’ spread?

Check the book depth and/or use limit order?

Spread buy/sell in multiple transactions inside the day or in a multi day period?

More like a theoretical question. For the near future at least…:slight_smile:

2

You can do direct NAV trading with IB and their block trading desk.

emeablockdesk@interactivebrokers.com

Starting at 100K.

You basically trade directly with the etf issuer at NAV, no spreads.

Fee is 1.5x the normal trading fee.

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3

Interesting…
What about “normal Swiss” broker. e.g. Swissquote / Saxo/ PF etc?
IB seems too far away for my “sleeping well at night” mentality.

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4

Sold on SIX a low 6 figures worth of a stocks ETF (SPICHA) and another one of a bonds ETF (CHCORP) this week.

Went with limit orders at mid price between bid and ask, after 15:30 so that the US market was open (maybe overkill, there seems to also be some volume at the end of the morning).

SPICHA went very smoothly and was executed in one lot within minutes.
CHCORP was executed in two separate lots and took a few hours to execute (but was executed within the day).

5

Was it a fixed mid, or dynamic mid? (Fixed mid might mean it executed only because the price went higher, so not necessarily a great execution?)

6

Fixed.

Edit: @nabalzbhf wouldn’t a dynamic one be equivalent to a market order, which is what I wanted to avoid by having the sale occur at a price I was happy with and not occur at all if the price went down [significantly] from it?

7

The issue with market order is that you eat into the book at it matches everything available, at least an alg mid price order only absorb the market making liquidity.

Anyway unless you’re trading something like real estate funds, if there’s a market maker in the venue you’ll be mostly fine.

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