Bid Higher than Ask

[Fox]

I've noticed this a couple of times where stocks gap up overnight, and for a few minutes before official opening the bid is higher than the ask.

Is there a way of taking advantage of this situation?

Fox

 

[bigtimetrader]

Sorry, thats not a trading opportunity. Market makers are not required to refresh their quotes until the market opens. Try to hit any of those bids and you will find that they are not good. You will see those bad bids or asks in the premarket pretty much everyday.

The only quotes that are valid pre-market are the ECNs.

 

[oatman]

What a pity, I was going to say "do some for me" :cheesy:

 

[SOCRATES]

Sorry, thats not a trading opportunity. Market makers are not required to refresh their quotes until the market opens. Try to hit any of those bids and you will find that they are not good. You will see those bad bids or asks in the premarket pretty much everyday.

The only quotes that are valid pre-market are the ECNs.

Also you will see these anomalies briefly from time to time in a live market.

 

[Trader333]

The only true "Bid and Ask" values that you can transact against pre-market are the ones with a little # before their name which in this case is #arca who is quoting a best Bid of $31.03 and a best Ask of $31.14 So unfortunately no opportunity for profit there unless you try to capture the spread which is risky.


Paul

 

[oatman]

Fast market:
http://www.ameritrade.com/educationv2/fhtml/stockmarket/fastmkts.fhtml

 

[Fox]

Many thanks for the help and feedback on this issue.

Fox.