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Strategies & Market Trends : The 56 Point TA; Charts With an Attitude -- Ignore unavailable to you. Want to Upgrade?


To: Redhead who wrote (10615)1/15/1998 3:10:00 PM
From: James Strauss  Respond to of 79296
 
High Volume, Small Spread... Low Volume, Big Spread...

Red:

Market makers want to make a profit on the stocks they handle... They can either make 1.00 on very low volume or 1/16 to 1/8 on larger volume... It comes down to them trying to make a living from the stocks they handle... I think they would prefer to make 1/16 on a 5000 share trade than 1.00 on a 100 share trade... The key is the volume...

Jim