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Strategies & Market Trends : From the Trading Desk

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To: steve goldman who wrote (2187)12/31/1997 10:45:00 AM
From: TFF  Read Replies (1) of 4969
 
Steve>>>>>>>: If the illiquid stock in a exchanged based system fell to low levels, then let the person who feels it is worth more buy the stock.

LOL.... If anyone has ever traded the Vancouver market they know all about this. Very often stocks go no bid or no ask. It definitely creates some interesting trading opportunities. Typically someone gets burned when an unsuspecting investor enters a market order and ends up paying way more/less than the recent average trading price.

Usually as soon as one stink bid/offer comes in, all the house traders pile on top of one another to tighten the spread.

The system works, but it does make you nervous if your long and there's no bid showing!

Cheers!
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