Clhb Level

CLHB

g

12.8000 h 12.8000 i 12.1400

1 12.1400

0 -0.5

TT

I 10:28:20 f-=-+=-+-+-==

TiV

I_3L

TS

SELLERS

I

MMID

Bid

Sip^J

' I

MMID

Ask

Size U

CANT

12 14+

/100\

FAHN

12.40-

5,700+

GSCO

1214-

/ 100 1

1 ARCA

12 40+

300+

NITE

12.14-

100-

ADFN

12 56+

100-

FAHN

1210

100

JEFF

12 70-

100

BAMM

12.02-

100

SUSQ

12 78

100

MLCO

12 01-

i 100

GSCO

12.79

700

PUGS

12.00

\ 300 j

vSCHB

13.00

1,500

JEFF

11 .SS

Yioo/

a ■-. f-i-r

ARCA

II .50

W

To sell 1,000 shares, you would

CINN

11.34

400

have to sell to eight market

SUSQ

11.05

100

makers with an average sell price

SCHB

11.00

100

of $12.05, 35 cents below the best

BRUS

10.60

100

offer at $12.40.

TRWN

10.00

1,000

BRUS

17.68

100

NATL

10.00

100

NATL

19.00

100

Trading large-share lots is highly dangerous, even for the experienced trader. Note the level 2 screen above. The spread is 26 cents between the bid at $12.14 and the ask at $12.40. It appears that this stock wants to go lower. Look at the volume offered in the ask column by FAHN. He is willing to sell 5,700 shares at $12.40. But in the bid column, CANT, GSCO, and NITE are only willing to buy 100 shares each at $12.14.

If you wanted to unload 1,000 shares, you would have to sell 300 at $12.14, 100 at $12.10, 100 at $12.02, 100 at $12.01, 300 at $12, and, finally, 100 at $11.95. Your average sell price on 1,000 shares would be $12.05. That is 35 cents below the best offer, which amounts to $350 on the 1,000 shares. Trying to get out of an illiquid stock when conditions are against you can be costly.

154 / Liquidity

0 0

Post a comment