Question: When you buy at .0002 does it have to get to .0004 befor you can sell it at .0003? that may be a stupid question but i'm trying to learn...
Posted by Repoman75 on :
No, you can sell at .0003 if someone is willing to buy it at .0003.
Posted by singer boy on :
thanks...
Posted by Ric on :
Thats true but that means the bid went to .0003 even briefly. That means the ask had to go to .0004 because the MM's which are the only ones you can go through must have a buyer willing to buy at .0004 before they will buy your shares at .0003. Pennies at this level don't work like big board stocks. MM's make there money on the spread so the spread must be there before a buy and sell can go through. So basically yes. If you want to sell yours at .0003 then the MM's must have someone willing to pay .0004 for your stock before thay will buy.
Ric
quote:Originally posted by Repoman75: No, you can sell at .0003 if someone is willing to buy it at .0003.
Posted by trader2004 on :
As long as all the market orders at 0.0002 are executed, then Limit orders at 0.0002 start executing in First come- First Serve basis.
But the fact as we all know as OTC traders (PK) is that, our stock is hard to sell unless it reaches 0.0003 as we can never close as a limit order. I mean it is rarely that you can given the situation of PKs.
Hope this helps.
Posted by singer boy on :
yes all this helps but what is an mm? sorry if it seems stupid of me but i'm just getting involved.
Posted by trader2004 on :
MM- Market Makers
Posted by Ric on :
MM or market makers are the middle man. Now in the penny market you must go through one of these market makers. When you place an order to your broker they give that order to one or more MM and request a buy or sell at whatever you limit order was. Most brokers require limit orders on otc's.. Now the MM will sell or buy for the broker who in turn gives the shares to you. This is a simple example you can research market makers for more detailed response.
Ric
Posted by singer boy on :
thanks ric...
Posted by Machiavelli on :
MM's like they said are Market Makers... they are broker/dealers... they act as brokers for their own clients and dealers when they trade their own account.. like the name suggests they make a Market... they must buy at the bid and sell at the ask...