RE: waiting in "long lines" to sell your stock at ask price

Discussion in 'Trading' started by Option Trader, Nov 18, 2009.

  1. Maler, this is your quote on the other thread:
    I sense what you're saying (or something similar to this syndrom) is VERY true and happy you are confirming this. Is there any way for us to prove it?
     
    #11     Nov 22, 2009
  2. maler

    maler

    I am not sure what you mean by proving this.
    You could in theory design a controlled experiment where you put a
    hard number on "how much" it costs to show a public limit and atach a
    statistical significance to it but it would be a formidable endeavor.

    Our regulators made a concious decision to preserve some edges for
    the dealer comunity in echange for an implicit commitment from them to be there and provide liquidity even in the most dire of circumstances.
    Whether it is the right cost benefit tradeoff for the general public is anyones guess. However, if people remember 1987, and how the specialists on the floor would not pick up the phone to keep their end of the bargain, my take is that the public got the short end of it.
     
    #12     Nov 22, 2009