Dealing with Spread

[alig]

Hi all,

I understand that there is a difference between the buy and sell price. I also believe that brokers have different 'spreads'. The broker I am using is averaging 3% which I feel is high as I am day trading and therefore have to make at least 3% to break even not including trading fees and stamp duty.

Anyone got any advice on how they deal with it. Maybe I need a new broker???

Regards
Alig

 

[Quantt]

Hi all,

I understand that there is a difference between the buy and sell price. I also believe that brokers have different 'spreads'. The broker I am using is averaging 3% which I feel is high as I am day trading and therefore have to make at least 3% to break even not including trading fees and stamp duty.

Anyone got any advice on how they deal with it. Maybe I need a new broker???

Regards
Alig

I guess you are not talking about stocks... this is bringing me back 20 years down memory line...

 

[alig]

I guess you are not talking about stocks... this is bringing me back 20 years down memory line...

I was talking about stocks i.e AO is circa bid - 111.8, ask - 116.3. Is this just the volume issue or is it Broker related?

 

[Quantt]

I was talking about stocks i.e AO is circa bid - 111.8, ask - 116.3. Is this just the volume issue or is it Broker related?

Which exchange the stock is trading on, cannot find it on the US stock exchanges to check... Also what is the average dally volume? It is possible to have such a spread on low volume high priced stocks...

 

[alig]

Its on LSE. Volume 108,472

 

[Quantt]

Its on LSE. Volume 108,472

Sorry I don't have back data for this so cannot check for you, but looks like very low vol stock, so it might be possible ...