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On 4 Feb 98 at 13:00, Troy Kelley wrote:
> I have been doing some paper trading on the mini and the big S&P.. I
> was surprised to notice that the spread between the bid and ask on
> the big contract seems to be much larger than on the mini. Is this
> right .. ?? perhaps I have my symbols wrong.???
>
Troy,
Since the SP is so much more liquid than the mini, watch the actual
trades on the SP instead of the bid/ask. When trading is active, the
bid/ask will not get updated accurately, since active trading makes
it moot.
Alternatively, during a thin time, it could just be floor
participants with their hands up looking for a trade, either to
establish inventory, liquidate inventory, or place a conversion /
reversal.
Cliff
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