Bid Ask ?

Discussion in 'Trading' started by StockyIrishman, Apr 5, 2007.

  1. WHat does it mean when there is a BID in TOtalview or Level II that is higher than the lowest ASK, or visa-versa
     
  2. One of two things generally. Either a "stale" quote from a non participating MM, or someone trying to get a quick fill (that usually only applies to listed stocks, however).

    Other things "happen" from time to time, nothing to worry too much about.

    The thing to worry about is the "robots" who duplicate the pennies but have whole dollar differences, luring people to buy a dollar higher, or sell a dollar lower (especially in illiquid stocks).

    Don
     
  3. rcj

    rcj

    Don ... not sure i understand. Wouldnt the spread have to be larger than 1$ for the duplicator to become "inside" ??
     
  4. ACtual offer might be 31.29 - robot will pop up with a 32.27 offer, for example, "newer" traders see the .27 and think it's a bargain...happens all the time.

    Don