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Spread- This is the difference between the bid and the ask estimate. Typically the market maker or specialist pockets this approach is usually buy buying shares from one individual in the bid price and selling them diverse individual in the ask price. Not too long ago, stocks were listed in fractions, therefore the spread was typically no less than 1/8 or there are twelve.5 cents per share (.50 for 100 shares). Recently stocks began trading in decimals so that the smallest theoretical spread is 1 penny per share or for 100 futures.
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