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Posted On: 06/15/2018 9:02:55 AM
Post# of 32720
Re: wvrifleman #5269
Typically the bid tightens 5 to 10 minutes prior to the open. But occasionally/rarely it doesn't. The wide spread prior to the open is to catch new investors off guard. It happens when a new investor places a market order to buy or sell prior to the open.
For example, say I place a market order to sell and the stock has been trading at $1.00 for the past month. My intention is to sell at a dollar but since the order is market my stock sells at the bid price. Oops - moral of the story - always place limit orders.
For example, say I place a market order to sell and the stock has been trading at $1.00 for the past month. My intention is to sell at a dollar but since the order is market my stock sells at the bid price. Oops - moral of the story - always place limit orders.
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