Citigroup announces 1-for-10 reverse stock split

[zdreg]

Quote from Marc to Market:

Because some traders' realized profits are significantly higher than their commissions...

?
if you trade the same dollar amount the realized profit amount is exactly the same. it has nothing to do with the price of the stock

 

[bears21]

Quote from zdreg:

?
if you trade the same dollar amount the realized profit amount is exactly the same. it has nothing to do with the price of the stock

the liquidity will not be the same it will trade wider and looser. rebate traders will have no choice but to move on from this stock.

 

[Marc to Market]

It has everything to do with the price of the stock. The same style of trading will not apply to C at $45 that it does at $4.50. The volume will also be only 10% of what it's doing today. You will not be able to trade it the same way, nor make the same kind of money trading it.

Quote from zdreg:

? if you trade the same dollar amount the realized profit amount is exactly the same. it has nothing to do with the price of the stock

 

[Maverick74]

Quote from zdreg:

?
if you trade the same dollar amount the realized profit amount is exactly the same. it has nothing to do with the price of the stock

The profit is coming from the rebates! Not from the share price.

 

[Crispy]

kiss o death, sell it

 

[Marc to Market]

That's not necessarily true. A lot of scalpers such as myself profit more from the spread than rebates. I don't do much rebate trading at all anymore actually.

Quote from Maverick74:

The profit is coming from the rebates! Not from the share price.

 

[zdreg]

perhaps. msft,qqqq trade with a .01 spread even at much a higher price than c.

 

[Marc to Market]

True, but look at the inside liquidity on the bid and offer on a QQQQ or MSFT compared to a C. World of difference. It takes a *LOT* more size to punch through to the next level on C than in those other stocks too. It's completely different.

Quote from zdreg:

perhaps. msft,qqqq trade with a .01 spread even at much a higher price than c.

 

[EPrado]

Quote from Maverick74:

The profit is coming from the rebates! Not from the share price.

The C traders will just move on to another stock to trade.

ALU, S, SIRI.....they will choose one of them and move on. This really won't change what they do, will just have to do it with a new stock. But they absolutely won't be able to trade C after May 6th. At that point you will see a huge volume spike in one of the above stocks.

These prop firms that trade C will adapt and move on. Probably not really a big deal.

 

[Maverick74]

Quote from EPrado:

The C traders will just move on to another stock to trade.

ALU, S, SIRI.....they will choose one of them and move on. This really won't change what they do, will just have to do it with a new stock. But they absolutely won't be able to trade C after May 6th. At that point you will see a huge volume spike in one of the above stocks.

These prop firms that trade C will adapt and move on. Probably not really a big deal.

Well ALU and S don't have anywhere near the volume. I think they are f*cked. But that is just my opinion. I'm often wrong.