Discussion in 'Order Execution' started by ShoeshineBoy, Jan 9, 2004.

  1. The spread the whole morning on DHOM has been between 12 and 25 cents which is .5% to 1.0% of the price. I don't normally trade something this thinly traded. (Avg vol the last few days: 50k).

    I sold twice this morning about half way between bid and ask! Seems like the MM was willing to accept any price

    I'm a total newbie when it comes to understanding what's really happening behind order execution. Here's what I'm wondering: on a thinly traded stock does the bid and ask have much meaning? Is the spread wide on light vol stocks simply because they don't want to commit to anything but in reality generally take any reasonable offer? What is the meaning of the bid/ask: isn't it actually the best price actually offered by anyone? What if noone is out there - what price is displayed on TWS?

    I know I'm asking a lot of questions - any little bits of info is much appreciated...