Bid/ask prices

Added by Andreas almost 8 years ago

I have noticed the following:

1) In the early mornings, most stocks are given a best bid of 1.00 and an ask price of 0.00. (For instance today at 7.00)
2) During the day, when the market is open, the following situation may very well occur: For a given instrument, there is a best bid but when you put an order to sell lower than that price, no trade is done.

Are these conditions normal?


Replies (2)

RE: Bid/ask prices - Added by Nordnet Simon almost 8 years ago

Andreas wrote:

1) In the early mornings, most stocks are given a best bid of 1.00 and an ask price of 0.00. (For instance today at 7.00)

I saw that this morning - we had some prth oblems withe feeds. It was resolved when we restarded it. Is this happening often? I haven't seen it before (I am not always the early bird)

2) During the day, when the market is open, the following situation may very well occur: For a given instrument, there is a best bid but when you put an order to sell lower than that price, no trade is done.

This can be a circuit-breaker that you see, they can in theory happen in production but are frequent in test.

When the price of a trade differ to much since the last trade NasdaqOMX is halting the matching engine for a while (3 minutes I think) and let people rethink. Before starting the matching again an EQ price is calculated and the trading starts in the exact same way as the pre-trade->continous trading opening in the morning.

But if the orders should match and they don't match after 5 minutes it is not a circuit-breaker it is something else that is wrong.

RE: Bid/ask prices - Added by Andreas almost 8 years ago

Thank you for your reply.

1) Yes, I've seen it before. Don't remember when, though. I can report it again if I see it.

2) Good then I know. Next time I will wait those 5 minutes and see what happens.

(1-2/2)