I've been lurking here for a couple weeks which is about as long as I've been learning about stocks. I've got a quick question I hope someone can answer. I've been watching this stock for about 3 weeks and the past two days now while the bid/ask spread is normally .01-.05 during the day, right around 4pm, the ask goes up to 4.99 and the bid remains about the same. In this case the bid is 2.94 right now. Can someone tell me why this is happening?
Posts: 16 | From: Rochester, NY | Registered: Aug 2006
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posted
At 4 pm, the market closes and the only way you can trade is in after hours market (ECN) This is a lot less regulated, and not very many people trade in it. Because of that (volume is down extremely) the spread is a lot larger. Usually is people trying to make a quick buck from the unexperience.
Bottom line is, dont place a market order in the ECN, and if you are really inexperienced, dont trade at all after hours.
Posts: 149 | From: Salt Lake City | Registered: Aug 2006
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quote:Originally posted by Vinnie: At 4 pm, the market closes and the only way you can trade is in after hours market (ECN) This is a lot less regulated, and not very many people trade in it. Because of that (volume is down extremely) the spread is a lot larger. Usually is people trying to make a quick buck from the unexperience.
Bottom line is, dont place a market order in the ECN, and if you are really inexperienced, dont trade at all after hours.
Posts: 16 | From: Rochester, NY | Registered: Aug 2006
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