Us stock traders are crazy into math and accuracy, original example was 1.4799 and 1.4701 which is 98 hundreds of a cent, or almost one penny. 14.799 - 14.701 in your example is 9.8 cents. So getting a one penny price improvement on a 5,000 share order is worth $50. If that happens one thousand times during a year of trading that's $50,000, ain't that crazy?
Broker Price Improvement - Good or Bad?
- Thread starter wpost
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Us stock traders are crazy into math and accuracy, original example was 1.4799 and 1.4701 which is 98 hundreds of a cent, or almost one penny. 14.799 - 14.701 in your example is 9.8 cents. So getting a one penny price improvement on a 5,000 share order is worth $50. If that happens one thousand times during a year of trading that's $50,000, ain't that crazy?
Oh yea, 98 thousandths of a dollar. Silly me.
But yeah, I guess over enough trades it really does add up.