What are the general scenarios that can happen with a stock when the Bid and Ask price marginalize at an exponential distance from each other the entire day?
Example NYER:
Beginning of the day: BID 2.65/ASK 2.74 Market Price 2.70
Middle of the day: BID 2.70/ASK 2.83 Market Price 2.80
Closing Bell: Bid 2.80/ASK 3.20 Market Price 2.90
Can someone tell me what is happening here?
[This message has been edited by NukeMeds (edited March 01, 2004).]
Posted by rhill72 on :
by no means am I an expert, but I have found that when the bid and ask are far apart from each other there usually isnt a lot of volume. Once they get closer you will usually start to see more volume and price change. For instance you have a stock XYZ with a bid of $2.75 and an ask of $3.25 and you buy it that stock has to move quite a bit for you to even break even.