Bid > Offer price?

Discussion in 'Order Execution' started by itmediaco, Jul 14, 2006.

  1. Attached is a chart of AQR WS (Acquicor Tech Warrants). Around 13:00, the best bid was 0.47 and best ask was 0.46. Has anyone seen this happen before and is it a discrepancy that can be traded?
  2. Chart:
  3. Just a temporary "locked market" - happens all the time. Sometimes it's "real" sometimes just stale bids. Harder to tell by a chart, you need a good Time and Sales window.

  4. Firms like Automated Trading Desk have Ph.D.'s working on algorithms that execute now at the microsecond level - used to be millisecond level. Any arb opportunity that can be traded is the lowest hanging fruit possible. If it can be traded, an arb should be gone faster than you can blink an eye.