Hi Bid Daddy: I'll give you a response based on my limited experience.
I have owned two stocks on the Canadian Dealers Network.
The first Bid.com used to trade as ILII on the CDN.
A lot of us first discovered that stock through a Canadian analyst who publishes a news letter, and doesn't like to be discussed on these threads.
Buying at the ask was her advice, as I recall.
I had a lot of stock that I bought, always at the ask price, I think.
Footmaxx, FTMX on the CDN; I have a lot of experience with this stock and the particular dealer who controls it.
Not happy experiences.
I have bought at the ask, and I have bought below the ask, but I'm not sure if I've ever bought at the bid. If I did, then the price immediately dropped.
It's been my impression that the dealers (like MMs in the States) play the spread. Sometimes on FTMX, the spread's been 25 %.
So, my experience is that if they'll let you buy at less than the ask, it's going down.
I do know, the bid and ask have no relevance to anything in this world. Frequently, the dealer controlling Footmaxx has not shown my bids, and he has sold someone's shares for less than I was bidding (to someone else). Meaning, we both got screwed. (the seller and I)
Hope that helps.
Maybe someone who REALLY knows will comment.
Cush |
