why do we need spreads?

Discussion in 'Trading' started by Gordon Gekko, Dec 10, 2002.

  1. miniTrdr

    miniTrdr

    how i think of it - price is set by limit orders, price movement is caused by marketable orders (limit orders to sell at bid and buy at ask are market orders)
     
    #21     Dec 10, 2002
  2. spreads can be a very good thing.i still remember the days when 1 tick made you $250 on 1000 shares.
     
    #22     Dec 10, 2002
  3. offer it at 4.60 and the spread will narrow to .05.

    You can eliminate the spread by offering it at 4.55, but I doubt that will last long. If you like tight spreads try bidding 4.73 and see what happens.
     
    #23     Dec 10, 2002
  4. Tacsian

    Tacsian

    Even baseball cards do have a spread...and IPOs...and well...check it out...crazy as it seems:

    http://www.etopps.com/
     
    #24     Dec 10, 2002