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Strategies & Market Trends : Winter in the Great White North -- Ignore unavailable to you. Want to Upgrade?

To: LeonardSlye who wrote (4426)	4/4/2003 12:46:54 AM
From: E. Charters	Read Replies (1) \| Respond to of 8273

In actual fact smaller trade increments have been found to interfere with liquidity, as groups of smaller trades get in the way of larger trades executing, as the small trader can see more margin with the finer splits on trades. This may not matter as much, however, in fast moving high-gain resource markets that are traditionally not traded for semi-point gains. If indeed there were an interference with large trade liquidity this would be in fact a good thing when it came time to "getting out" as it maximizes the chances of trades matching, and minimizes the chance of large trades prematurely trashing the market. On the other hand, it interferes with large trade support contracts, which could in the long run make market support weaker, and could tend to make large position traders less likely to enter markets. It's a double edged sword. Search the idea in google.ca under decimal trading for the NYSE where it is discussed. EC<:-}