Is This A Typo By IB

[cpatte7372]

Hello,

Would someone please take a quick look at attached image and let me if this is a typo where IB state that you should click the "bid price for a (sell order)" and "ask price for a (buy order)". Should it not be the other way round?

Cheers

Carlton

P.S. I'm sorry its a little difficult to read - I had to reduce its size to within the limits.

[FibbGann]

They are correct, it is not the other way around.


Fibbgann

[cpatte7372]

Fibbgann,

Thanks for responding. I just thought that if you were bidding on a stock you are effectively wanting to purchase that security, not sell it.

Carlton

[soylent]

Right, if you are bidding (want to buy), you'll have to pay the ASK. So, you click the 'This is what we are ASKing for this stock you wish to buy".

And, reverse for bid. ("this is what we BID for this stock you want to sell).

The bid/ask is the spread. On most big stocks, it's just 1 cent. Less active stocks can average .40 cents (even more) between the bid/ask. Average is probably .10 cents on the low volume stuff.

BUT, you can put a limit order -- like you could SPLIT the bid/ask. In which case, you 'become' the bid (the highest). I read somewhere (Stocks and Commodities mag a column by the 'Bright' fellow, I think) that it pisses off the market makers when you split the bid/ask. Anyone ever hear this? I suppose it would piss them off because they don't get such a nice spread. But, what can they do about it? Anything? I guess it also PO's the scalpers, too...

I don't split it -- it's almost always a waste to chase the bid up. I just get inline behind the MM @ the bid. (Or, @ some lower/higher bid where I expect the stock to retrace to...).

-c