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PMT Forum's MOST POPULAR Discussion Boards => Stocks and Stock Trading => Topic started by: patski on Jan 30, 2014, 03:24 PM

Title: Stock Market Makers/Specialist and Spread Sheet - NEWBIE QUESTION
Post by: patski on Jan 30, 2014, 03:24 PM
Hello PMT

After several months of learning the art of stock market investing. Reading books, internet materials, and attending seminars there is one question that I do not have an answer.

The question would be..

HOW A TRADE IS MADE ON THE STOCK MARKET and WHAT IS THE ROLE OF THE MARKET MAKERS/SPECIALIST?

So my understanding is if a BID and ASK price is met, then a trade will be made. Simple enough, pero marami akong mga WHAT IF questions na wala pang sagot.

WHAT IF questions.

1. Stock ABC has
a. Bid of 10ph/share with 10000 lot size
b. Ask of 10ph/share with 5000 lot size.

2. Stock ABC has
a. Bid price of 10/share with 10000 lot size.
b. Ask price of 9/share with 5000 lot size.

On the above situations, how will a trade be made and what would be the role of the Market Maker/Specialist (i.e ano ang gagawin ni Specialist para mag karoon nang trade).

I just noticed the above mentioned situations nung binabantayan ko a certain stock on a daily and intraday.

salamat po
Title: Re: Stock Market Makers/Specialist and Spread Sheet - NEWBIE QUESTION
Post by: mikoangelo on Jan 30, 2014, 05:05 PM
Quote
WHAT IF questions.

1. Stock ABC has
a. Bid of 10ph/share with 10000 lot size
b. Ask of 10ph/share with 5000 lot size

The bid will be partially filled..

you can wait for somebody to sell their shares at the same price para mabuo yung number of shares na gusto mo...

Pwede mo din cancell yung bid mo once napartial filled ka...

Quote
2. Stock ABC has
a. Bid price of 10/share with 10000 lot size.
b. Ask price of 9/share with 5000 lot size.

half of your trade will be hit at 9/share and the other half will be hit based on your asking price which is ten pesos.....