Question about wide spreads....

Discussion in 'Trading' started by infosponge, May 2, 2006.

  1. I have a question about spreads. For a stock that is moving fast in one direction, is it normal for the spread to be insanely wide?

    I was following BBC ($10 stock) today and it was a pretty fast mover. I was suprised to see the spread as high as .10! That's a 1% spread. Is that normal? I guess perhaps a big reason for this was the somewhat low liquidity. As I type this, around 1mil shares have changed hands.

    Have a nice day!:)