SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Strategies & Market Trends : Analysis Class for Beginners

 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Arthur Tang who wrote (709)2/15/1998 3:47:00 PM
From: Arthur Tang  Read Replies (1) of 1471
 
Small markets and how small is the market?

NYSE is the largest market of equity. Price of stocks could trade $2-3/share higher. Small markets are for matching buyers and sellers, price could be inflexible and orders not executed until a match can be found. Instinet is small, and prices are generally lower; but CNBC often quote them as the trend of things to come. Other overnight trading brokerages all do small volume. Some times the price does not change from closing bid and ask. London market is smaller than NYSE, and you can see American stocks at most move $1/4/share/day. Not good for day traders. Island system limit book is a small market; you can trace the number of shares traded in Nasdaq trading data on each stock. Internet brokerages are small markets, you can again check the Nasdaq trading data to get a sense of their size.

On the other hand, when you look at the Nasdaq trading data; you see some very large trades and some of them by large brokerages. Large brokerages provide a large market for Nasdaq stocks. Some of them are market makers on some stock and not others. So to trade in large markets; trade with large full service brokerages.
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext