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Strategies & Market Trends : After Hours Trading(ECN)-The Coming 24/7 Trading Explosion -- Ignore unavailable to you. Want to Upgrade?

To: Lola who wrote (43)	4/9/1999 8:16:00 PM
From: Tai Jin	Read Replies (2) \| Respond to of 314

You bring up some good points. However, investors should not be concerned with a normal spread since they should only be concerned with long term growth. If the stock can't grow more than the spread in a reasonable amount of time then there's something wrong with the stock. The spread hurts day traders, I'll grant you that. Even in computerized matching, there will still be a spread. That is the result of having limit orders. I can see where market orders can matched between the bid and ask, but if there is no matching order the market order will have to hit the bid or ask and you will end up with an immediate loss by the spread. This is unavoidable. ...tai

To: Lola who wrote (43)	4/9/1999 9:26:00 PM
From: brec	Read Replies (2) \| Respond to of 314

Sorry, I don't know what "weighs the buys and sells against each other after every transaction" means. There are buyers who make bids and sellers who make offers; that's all there are. When the best bid and the best offer meet, a transaction takes place. My question about the TSE still stands: What happens when a member doesn't find a matching order on the electronic system that is reasonably near recent transaction prices? What, exactly, in detail, happens? Example: suppose the last trade in Example, Inc., was at $100. Jane Doe places a market order with her broker, a member of the TSE, to buy 100 shares. The best offer in the computer's order book at the moment is at $125. Does Jane pay $125? If she buys at a lower price, who is the seller? Regardless of what anyone thinks "should" be the case, the only way to sell a security at the same price at which one just bought it a moment before is if there is a buyer willing to pay that same price. This may happen, but it is not usually the case -- in any market, anywhere in the world, as what I am talking about is the nature of markets, not a particular one.