What does it mean to place an order inside the spread?

Question

This is regarding the FOREX

Answer 1

Like any quote you can try and do better. Lets say a share price is quoted as 100-110 by a market maker. As you know he is obliged to make a quote in a certain size depending on the stock. There is nothing to stop you saying " I will buy 10000 at 106 (it is usually best to go somewhere just over the middle price)"

Maybe it will suit him and he will agree, or maybe counter with 107 (you could try 106.5, depends on the size of the bargain.

Same with currency. You will normally be quoted a bog standard price. So if you are trading a reasonably large number you put something to the dealer.

With smaller priced shares it is possible to get stock at or below the offer price (in size). This is why you shouldn't take too much notce of the red/blue colour of trades as it does not always mean sell or buy. If you want to learn more go to http://www.shareworld.co.uk and ask questions.

Answer 2

1) The first rule of gambling is to understand the rules ..

(so you had better find a good book that explains all the technical terms before starting :-) )

2) see one :-)