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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 (48)	4/9/1999 9:42:00 PM
From: Tai Jin	Read Replies (1) \| Respond to of 314

I don't think you would be guaranteed such narrow spreads even on an ECN like ISLD. But it really depends on the stock. Some stocks have a 1/16 spread if they are liquid, others have wider spreads. Internet stocks can sometimes have insane spreads of 1-2 points. The spread is determined by limit orders, liquidity, and interest in a stock. That's all. An all electronic system like ISLD doesn't change that. I am not defending market makers. I wish they were required to play by the same rules as ECNs. ...tai

To: Lola who wrote (48)	4/10/1999 6:49:00 AM
From: brec	Read Replies (2) \| Respond to of 314

A spread does not suggest a middleman; a spread suggests a market. The dictionary definition of a spread (in the context of interest here) is "The difference between the price asked and bid for a particular security" (American Heritage). The market for each and every security -- or indeed for any fungible -- everywhere on this planet, whether electronic or not, whether middlemen are involved or not, has a spread. Where there is no spread, there is no market; where there is a market, there is a spread.