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TOPIC: Five-cent Spread

Five-cent Spread 1 month 1 week ago #1

  • kaveh
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The new SEC tick size pilot test began in October, and selected small cap stocks will begin trading in five-cent increments instead of one-cent increments for the next two years.
The pilot test consists of 1,400 stocks.
The pro: stop hft because the higher the spread is, the more thinly traded it is. HFT operates on very high liquid stocks.
Bring back the scalpers. Now you buy at the bid and sell at the ask and make 5c/share.
Market makers will make more money.
Con: everything will come out of retail investors.
"Bring back the old days," when market makers ruled the market. This is like "hamsters running on wheels"
The "Market" is a zero sum game. If somebody makes money, somebody has to loose it.
Last Edit: 1 month 1 week ago by kaveh.
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