Price improvement

Discussion in 'Trading' started by boba15, Jan 6, 2012.

  1. boba15

    boba15

    Hi traders,

    Often I see prints in the middle of the stock's bid/ask spread.

    Example:

    2400 28.00 --- 28.005 x 100 --- 28.01 500
    2400 28.00 --- 28.01 x 200 ---- 28.01 500
    2400 28.00 --- 28.0069 x 100 -- 28.01 500

    What are they?

    If this is a price improvement a bd gives to a trader on a market order, what is the reason to print it in the middle of the spread instead of improving by only 0.0001 (i.e. instead of 28.0050 -> 28.0099 if somebody hits the offer)? To conceal if it was buy or sell?
     
  2. rmorse

    rmorse ET Sponsor

    It might have been a limit order at that price.
     
  3. boba15

    boba15

    Nope, price increment for this particular stock (GNC) is 0.01. Or?