Silicon Investor (SI) -- The First Internet Community

STOCKTALK

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 : From the Trading Desk -- Ignore unavailable to you. Want to Upgrade?

To: Pullin-GS who wrote (1773)	11/24/1997 7:23:00 AM
From: steve goldman	Respond to of 4969

Another issue: Stocks with larger spreads typically have those spreads because they are relatively illiquid, less active and less attrractive than the MSFTs, DELLs, CSCOs, etc. of the world. The mm's keep these spreads to offset the chance they get hit with stock or stock is taken and they are wrong. Let to their own, these mm's would keep the spreads as big as possible since this is their profit. So in addition to being in the "hole" when you buy a stock, buying a stock with a large spread means you have to go further just to get even and then ahead. On an illiquid stock with a large spread, consider using selectnet and bidding in between or having the firm display your order (improving the inside market). Perhaps you can get the stock closer to the bid side. Nonetheless, you are probably getting involved with a security that is less active and thus you may sit with a non-mover, which would be ok for an investor but the odds are against it for a trader. Regards, steve@yamner.com