I have looked at HPT for the last several months as have owned it in the past. Today I see a $3.60 price difference from the bid to ask price. Who/what determines the difference? I know one buys at the ask price and sells at the bid price. At least I believe that to be true. What causes such a huge spread?
Thanks, Mike
The bid price is someone willing to buy at that price and the ask is what someone is willing to sell. Did you see a 3.60 difference in after hours trading or pre market? I only see a couple penny spread throughout the day of trading. Sometimes a market maker will be the one buying or selling and you might get exaggerated spreads when they do it, but 3.60 on a $26 stock is extreme and I would question the data that you are seeing. Where are you seeing the prices?
I saw it on a stock quote on an online brokerage firm. It was after the market closed.Originally Posted by boneil
After hours is the reason why. The prices you see are just someones order. After hours and pre maket are a suckers game for the inexperience there is no liquidity.
So if you buy during off hours it doesn't actually go thru until the market opens back up? If the price changes does your purchase not go through or does it go through at the new price?
He/him
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Your order gets filled at the price you buy at, at the time of order. Now your broker may not have after hours trading or may only for a short time after the normal market hours.
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