RUT Spreads Width

[rukuz]

Does anybody have any insight into whether a 10-point wide spread vs. a 20-point wide spread would likely be easier to have executed? Since most of the spreads I see in the order book are 10-point wide I would venture a guess that these spreads are more liquid. On the other hand, I would imagine market makers wouldn't have one preference over the other... Any thoughts?

 

[50_Bip]

I trade both and they don't give a fuck

Quote from rukuz:

Does anybody have any insight into whether a 10-point wide spread vs. a 20-point wide spread would likely be easier to have executed? Since most of the spreads I see in the order book are 10-point wide I would venture a guess that these spreads are more liquid. On the other hand, I would imagine market makers wouldn't have one preference over the other... Any thoughts?

 

[dagnyt]

Quote from rukuz:

Does anybody have any insight into whether a 10-point wide spread vs. a 20-point wide spread would likely be easier to have executed?

It should make no difference.

The only time it has a chance to matter occurs if you get to trade with another customer - and that's very unlikely.

Mark

 

[JohnGreen]

If your broker shows other people's orders, check and see if there is a spread there that matches what you want (them buying and you selling or vice versa). If there is you may be able to offer right at their price and get a very good deal since most people wind up buying about 10 cents away from the midpoint. Otherwise, you will have to get the marketmaker to deal with you (which is not as painful as it used to be, thankfully). It's worth a quick look anyway.