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Strategies & Market Trends : From the Trading Desk

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To: debby who wrote (4791)4/17/2000 12:26:00 PM
From: John F.  Read Replies (1) of 4969
 
debby, this is the way I think it works:

On the NYSE I believe the specialists have to step in and buy, and they can't just drop the bid 10 points all at once. But, they can walk it down 1/8 of a point on every trade executed. So, you can get a 10 dollar drop pretty quickly. Someone please correct me if I am wrong .. and feel free to expand on my response. Not sure how it works on the Nasdaq and AMEX.
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