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What does it mean when the bid and asking price are both at 0.00

 

26
Dec, 2010
Original Post
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Im having a problem here. Im looking at the stock VLYWW and it says in the trading center, when I put the symbol in, that the bid and asking price are 0.00. The stock is worth $2.50. Now, if I go into the Global market tab and type in VLYWW I see that the buy/ask is 2.18/2.70. Now when I bought the stock I bought 275 shares of it and the total came to $687.50 which is 2.50 * 275. So what is this 2.70 being stated as my asking price? I obviously didn't pay that or will it be shown that I did tomorrow when the market opens again?
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11 Replies

  • Dec 27, 2010 at 10:14AM
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    Member log  MrBatman Member participation ranking in the ZeccoShare community

    $2.70 is the ask (what the broker would like), however you will find on low volume trading stocks that have large spreads between the bid ($2.18) and ask ($2.70) those numbers are more optional as far as the broker's request for purchase price. The $2.50 is what you did purchase the stock for, however you will notice it is between $2.18 and $2.70. Don't bother with those numbers if they are so vastly different, just always throw a limit and see if it gets executed.
    2 vote(s)
  • Dec 27, 2010 at 11:14AM
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    Member log  CrudeTree Member participation ranking in the ZeccoShare community

    This is a similar problem I just got this morning and asked Zecco Live Chat and they didn't help much basically this is what happened "I had a question about stock I just bought. I bought XBKS last night at what I thought was $5.15 this morning it shows it opened at $5.74 which it had me buy. I decided that I didn't want to buy it there so I sold and it sold my stock back at $5.15 and I got screwed like $80". The Zecco guy said this is because it was a Market trade and I should have done a buy limit or stop. I don't understand why my P & L was 0.00 and the % change of the stock was also 0.00 and said it was at $5.74. So why the heck did it have me sell at $5.15 if I bought at (forced) $5.74???
    2 vote(s)
  • Dec 27, 2010 at 11:21AM
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    Member log  nemesis Member participation ranking in the ZeccoShare community

    Always, always use LIMIT orders. It is not Zecco, but the system (trading exchange, MMs) that will take your money .
    2 vote(s)
  • Dec 27, 2010 at 11:28AM
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    Member log  CrudeTree Member participation ranking in the ZeccoShare community

    So in this situation an example of a smarter move would to have set a buy limit at $5.74 (assuming I somehow knew It was going to be there) so that when I sell it cant possibly sell back at $5.15. Could this all have been avoided if I just waited till after the weekend?... I still dont understand limit orders great yet. Cuz if I set it to $5.60 I would have still lost money just not as much and if I set it to $5.80 I would be setting it way to high (compared to $5.15 where I wanted to buy) and I still wouldn't have bought. The best I could have done is set my limit to $5.74 which means I can predict the future AND Gain $0.00. Was there any way I could have bought at $5.15 where it was that day I bought it?
    2 vote(s)
  • Dec 27, 2010 at 1:48PM
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    Member log  miya Member participation ranking in the ZeccoShare community sMember is sharing their portfolio

    The problem is not with market order or limit order. You should understand bid ask spread and last price. In your case, the lack of understanding this bid ask spread cheated you, but not the market nor the Zecco. This is especially true with thinly traded stocks with huge bid ask spread.
    4 vote(s)
  • Dec 27, 2010 at 3:15PM
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    Member log  CrudeTree Member participation ranking in the ZeccoShare community

    I think you are right now that I look at it. I see the asking price is about .50 cents over the bid price. One thing is that yesterday the bid/ask were both 0.00/0.00. Could this be because it was a weekend and so they didn't know what the bid was so they couldn't tell the asking price?
  • Dec 27, 2010 at 6:37PM
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    Member log  WJCIV Member participation ranking in the ZeccoShare community sMember is sharing their portfolio

    If you put in a market buy, you will buy the cheapest shares anyone is willing to sell rather than waiting for it to come down to your price. Market sells get rid of your shares without waiting for a buyer willing to pay what you want. So on thinly traded stocks, market orders will often buy high and sell low.

    When you put in a limit buy order, put the highest price you want to pay. You will either get the shares for that price (or lower) or not buy it at all. You risk not getting the shares you want, but at least you will not overpay.

    Sell orders are the opposite - you put in the minimum price you want to receive in order to part with your shares.
    2 vote(s)
  • Dec 27, 2010 at 7:02PM
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    Member log  bennett1 Member participation ranking in the ZeccoShare community sMember is sharing their portfolio

    Thinly traded stocks scare me.....

    /me runs away
    3 vote(s)
  • Jan 04, 2011 at 10:16AM
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    Member log  todkrieger Member participation ranking in the ZeccoShare community

    If you trust your research, put a limit order in at the price you believe will hit (and are willing to pay). if you didn't do research or don't trust your research, don't buy!
    1 vote(s)
  • Jan 04, 2011 at 1:05PM
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    Member log  CrudeTree Member participation ranking in the ZeccoShare community

    That is so true todkrieger. Thanks :)
    1 vote(s)
  • Jan 12, 2011 at 1:21PM
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    Member log  todkrieger Member participation ranking in the ZeccoShare community

    I have lost money from insufficient research (as I'm sure most have)it is part of the learning curve. Check the SEC filings and ask questions. It is often hard to know what information to give value to.
    Watch your charts and the relative market sentiment. Both are relevant. Trading is as much about emotion as it is valuation of the stock. I trade low, based on current activity. I would rather miss a good opportunity to make money than enter a bad opportunity and lose money! The "Dammit, I should have bought", is better than the "Dammit, why did I buy"!
    Buy limit, and watch out for the "pump and dumps" they are everywhere.
    Do what allows you to sleep at night, don't risk money that needs to go to the mortgage and good luck on your future trades.
    1 vote(s)

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