why not to trade a $100 stock

[Don Bright]

Quote from joe_blo:

Actually, the "SOES Bandits" of old used SOES, which could only be used to pay spreads. There were no "hidden" orders (or ECNs for that matter).

Right, I was referring to the "going between the markets" on the Small Order Entry System to attempt to pick off the market makers with those wide spreads. SOES was "interesting" - didn't last too long, but showed how quickly markets can adapt (SoesBusters software, etc.).

Don

 

[joe_blo]

Quote from Don Bright:

Right, I was referring to the "going between the markets" on the Small Order Entry System to attempt to pick off the market makers with those wide spreads. SOES was "interesting" - didn't last too long, but showed how quickly markets can adapt (SoesBusters software, etc.).

Don

Never heard of SoesBusters. What'd it do?

 

[NYOBScalper]

Quote from Sky123987:

I'm in this stock class and they say never to trade a > $100 stock here's why:

Example 120.20 (bid) 120.35(ask)
say you are first in line with a buy limit 120.20. A sell market order comes. What they say is that if the specialist knows that the price will go up, he'll bid 121.21 and get his order filled. Or if the specialist knows the price will go down he'll let you get filled. So you only get filled when you don't what to. Is that true?

Also if so, they why couldn't this happen in a stock with a spread > .01 like 23.02 (bid) 23.04(ask), if you bid .02 the specialist could penny you @ .03?

I dont mean this to be a dick at all, but if you're asking these questions, you shouldn't trade any stock on an intraday timeframe until you've watched price for some time.