Re: Bid - Ask spread

From: Ken Meinken <kmeinken@bigfoot.com>
Subject: Re: Bid - Ask spread
Date: Mon, 25 May 1998 21:32:26 -0004

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> Date: Fri, 22 May 1998 23:16:30 -0400 (EDT)
> From: MsProf2U <MsProf2U@aol.com>
> Different market-makers have different bid-asked spreads, and some brokers
> indeed fill market orders at better prices than other brokers. I avoid the
> whole thing by placing limit orders for most of my trades. 

No, you avoid none of this by using limit orders.  All you do is 
assure that you get a specific price **IF** you get any transaction 
at all.  Bid-ask spreads, payment for order flow, etc. all still 
exist and are factored into your transaction.

You will, of course, avoid paying a higher price.  But, for that 
assurance, you might miss the transaction entirely.  Perhaps you 
avoid paying an extra fraction, but you might end up missing a good 
stock entirely.

Ken 



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