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Strategies & Market Trends : After Hours Trading(ECN)-The Coming 24/7 Trading Explosion

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To: Lola who wrote (48)4/9/1999 9:42:00 PM
From: Tai Jin  Read Replies (1) of 314
 
I don't think you would be guaranteed such narrow spreads even on an ECN like ISLD. But it really depends on the stock. Some stocks have a 1/16 spread if they are liquid, others have wider spreads. Internet stocks can sometimes have insane spreads of 1-2 points.

The spread is determined by limit orders, liquidity, and interest in a stock. That's all. An all electronic system like ISLD doesn't change that.

I am not defending market makers. I wish they were required to play by the same rules as ECNs.

...tai
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