First, we concentrate on the bid-ask spread
and base our analysis on a data set including the first five levels of the order book; this allows us to examine transaction costs also for large trades that walk up the book.
Understand Components of the Bid-Ask Spread
-- Investors and advisors should examine the underlying components that can significantly influence the value of the bid-ask spread
and understand the implications it can have on the cost of ETFs.
The second alert type looks at the bid-ask spread
and sends a message if the spread exceeds the maximum threshold.
The appropriate fair value for reporting would be the most representative point within the bid-ask spread
in a hypothetical transaction for a comparable contract.
The People's Bank of China said it would scrap controls over the bid-ask spread
of dollar-yuan trading.
Specifically, the study seeks to empirically evaluate the impact that mobile technology and IR apps may have on a company's trading volume, stock liquidity, bid-ask spread
, and analyst coverage, among others.
Confronted with the potential loss, the liquidity providers may widen the bid-ask spread
to avert such loss.
Jason Kabel, head of fixed income at Bank of London and the Middle East, said, "I would expect a bid-ask spread
of roughly 25 bps, providing the issue is large enough to ensure sufficient liquidity.
He said transaction activity actually declined in 2012, "but that reflects a dearth of credit tenant properties available for sale rather than a wider bid-ask spread
between buyers and sellers.
Lastly, by comparing trades for which customers pay and receive inflation, we are able to infer a realized bid-ask spread
for customers of 3 basis points, which essentially matches the quoted bid-ask spreads
reported by dealers.
This indicates the growth in the momentum of the trading activity, largely due to the narrow bid-ask spread
and higher liquidity for the BFX Futures, it added.
Shares of Cherepovetsky Azot were valued at R1800 ($58) per common and R1725 ($56) per pref, both around the bottom of current bid-ask spread