Starting from monday, the bids spread for stocks in range $3 - $9.99 will be lowered to 1cent, those =>$10 will be 2cents. Previous spread were 2cents for $3-$4.99, 5cents for $5-$9.99 and 10cents for =>$10. Impact on the market????
The narrower spread will increase liquidity in these stocks but reduce the profit attraction attributes they ones carry. Interest might temporarily shift towards stocks in the lower price range. Will STI fall because on this?? This is still a question on the minds of many with no clear answer.
Seems like another trading strategy will turn obsolete due to this new implementation. Haha...New ones will come and old ones have to go, if you cant think fast enough, you also have to go.
Let the wind water blow some sense into our heads...cheers
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