Datek Brokerage $9.95 a trade Message Board

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Non-Tech : Datek Brokerage $9.95 a trade

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To: Dan Duchardt who wrote (6294)	12/23/1997 8:34:00 AM
From: MJR	Read Replies (1) of 16892

I'm not sure it's quite sure that you will NEVER get a buy below the ask and a sell above the bid. Some of that is up to the market makers... let's say XYZ is trading at a bid of 10 and an ask of 10 1/4. If you put a sell order in at 10 1/8, you may get the fill if a couple of things are happenning: 1) the MM wants to accumulate shares because he knows/thinks this is a good price that he will be able to unload for a profit later, or 2) things are bullish with XYZ and the bid is about to go up. Note that 1 and 2 could be, but don't have to be, for the same reason. A similar bearish argument could be said for being able to sell above the bid. Buys and sells between the bid/ask can and do happen.. even with Datek.. in fact, that's why I'm with Datek.. they have on some occasions been able to fill my order between the spread giving me an extra 1/16th or so.. which is free money! I'm surprised the rep you talked to didn't phrase it with the term "usually" rather than "never" Hope this helps, Mike

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