if it says 0.0041 (x5,000) as the ask that means that you can buy it for .0041 but there is only 5000 shares for you to buy? so im actually askign what the 5000 means.
ive reasearched alot on investing but that has me confused,b\c that doesnt sound right at all even though it sounds logically correct.
posted
Kyle, the ask price that you see: (0.0041 x 5000) is the lowest price that someone(market maker or specialist)is willing to sell. I am assuming that this is a OTC stock, then it would be a market maker. 5000 shares are up for sale at the price of 0.0041. But most likely, there are more shares for sale at higher prices, 0.0042,0.0043,0.005, etc. If you look at level II quotes, you will see the list of bids and asks, at the various prices and the shares available at those prices. I am learning also, and this is the way I understand it. A good book I read a while back helps to explain this subject, and many others. It is called: The Day Trader's Survival Guide, by Christopher Farrell. Don't get me wrong, I am not suggesting you daytrade, I am just saying that this book is a good read, to help clear up some questions you may have.
IP: Logged |
It may go through. Maybe immediately, maybe never.
I often place a limit order at the bid price. It may not get filled. But if you are patient, often they do get filled.
If you place your limit at a higher price then the bid, a better chance the order will fill.
All or none (AON) is good because the Market maker may only fill a partial. One time, I placed a 20,000 share order for a .02 stock. 100 shares filled at partial because I did not put AON. Then, it never filled. So... I bought a 100 x $.02 = $2.00 and paid Ameritrade $10.99, LOL
UBBFriend: Email this page to someone!
Printer-friendly view of this topic
