Bid Higher than Ask

Fox

Newbie
5 0
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
 

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bigtimetrader

Junior member
47 2
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.
 

SOCRATES

Veteren member
4,966 134
bigtimetrader said:
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

Moderator
8,601 931
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
 
 
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