Thread: Beating the spreads

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  1. #1

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    But you gotta remember...20 years ago the bid/ask spreads were huge. Today we can thank the algorithmic or high frequency traders and machines for penny wide markets. Giving up a penny or two occasionally on tight markets is not a big deal...the liquidity providers have to have some sort of incentive to take the other side of anything we do.

    There are those that understand market making more than I do on here so if they can correct or elaborate on any of that I would be appreciative.
  2. #2

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    2 great responses and while to me every penny would count I agree with the 2 previous posts, if that were a concern then you shouldn't be buying at all. I hope whatever your investing is going to "net" you a whole lot more on a long position. The only place I would see it being a problem would be IF the stock were a micro cap in my opinion.

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