the OFFER is lower than the BID

Discussion in 'Order Execution' started by jonnysharp, Feb 25, 2005.

  1. trade24

    trade24

    crossed mkts - happens on a regular basis - hard to exploit - quotes are lagging which is usually the cause for u seeing this - check w/ your software provider and check your it connection
     
    #21     Feb 27, 2005
  2. tradegen

    tradegen

    it is not quotes that are lagging.
    it is very simple. Often times the specialist is holding a huge market sell order for example and people are willing to get out 5-10 cents lower then the bid because they KNOW the specialist is about to pull his bid down a lot more.

    Yes you can consider this an arb, but if the specialist decides to pull his bid down 50 cents, you will be screwed. I have seen it happen a lot of times.
     
    #22     May 28, 2005