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Strategies & Market Trends : Level II Trading -- Ignore unavailable to you. Want to Upgrade?

To: Tony Peng who wrote (447)	4/8/1998 4:44:00 PM
From: Scott	Read Replies (1) \| Respond to of 1086

Anyone can get an execution inside the spread, as long as someone else comes along to hit your bid or offer. If the spread is 1/4, you can bid at 1/16 above the best bid, and then offer at 1/16 below the best offer, getting yourself 1/8 in the process. This assumes adequate volume, and no movement by the market makers or other traders :-) Regarding the question about ECNs - the ECN will become the inside market if your bid or offer is inside the spread. You have a great advantage when trading through an ECN, but you're not guaranteed a fill.