stowaway, I believe what David meant was that at the time you placed
your order, the bid/ask was .048 x .049. When you buy pennystocks, you
will most of the time pay the asking price. When you sell you sell at
the bid price. So, if the bid ask was .049, you would not get filled
unless some MM was desperate and/or lowered the bid/ask to say .047
x .048. Even then, you may not get filled since you were wanting to
buy 55k shares. Most MM on this stock have a bid/ask at 5k x 5k, meaning they are obligated to sell you 5k shares of the stock at the ask price at the time. They can then raise the ask higher with another
5k x 5k, then you're out of luck with a limit order until the price
drops. If you place a market order, you are guaranteed to get filled;
but, the same principle holds... 5k x 5k at a time. With a market order for shares above the standard offered of 5k, you can easily(and usually do)pay above the ask that was in place when you entered your order. After each block of 5k traded, the MM's can then raise or lower as they see fit. If the demand is great, the price goes up; if demand weak, the price drops.
Anyone else care to add?
Ben |
