Buying at open/close

[ddunne82]

Hi,

I hope this isnt too much of a dumb question but can someone with more knowledge than me clear the following up for me:

In regards to US stocks, if you place an order to buy at the open/close, do you still pay a spread or is there one settlement price at this time of the day?

Thanks

David

 

[Mr. Charts]

I would strongly advise you not to buy at those times without direct access to the market. You would leave yourself open to very bad fills and MMs shift prices around at those times so volatility can be very high and you need skill, timing and execution abilities to be successful. Otherwise you will get eaten alive.
You are entering a transaction with another party and there will normally be a spread.
I've been trading US shares for a living for more than five years, so please take notice. The above are not opinions, they are facts.
Richard

 

[ddunne82]

Thanks for the reply. How would you recommned buying at the open then and selling at the close in order to get the best fill? I'd be using someone like tradestation as trading access.

Thanks

David

 

[wwatson1]

I second Mr charts, Let the stock open and the spread narrow.

 

[popcorn]

Trading at the edges of a trading session is scary stuff in terms of trade management! Why would you want to put yourself in that position?

 

[JillyB]

Watch the stock you're trading, each one differs with regard to bid/offer. With some the spread will narrow quite quickly - 15-20 mins after opening, and with others it can take longer 45 mins.

I usually have a look at lunchtime if I'm watching a particular stock as that is when the bid/offer will usually be the closest and will give you a good idea at what bid/offer range to look for.

Hope this helps.