Optec International Inc (OPTI)

[Deep6]

It is a pretty normal thing in the OTC ...

Volume and bid-ask spreads during after-hours and pre-market trading

There are many fewer players during these trading hours compared to normal market trading hours and so the bid-ask spreads become much wider. This, along with potential for greater price fluctuations, create more risk for investors. Those who do trade after-hours would make the case that opportunities can be created that may not be available when there is normal market trading volume.


How are bid-ask spreads published?

The published bid price is the buy order with the highest price and the published ask price is the sell order with the lowest price and exchanges attempt to match these orders up. During normal trading hours with greater volume, there is a much better opportunity to execute these matches with little difference between the bid and ask prices. With the lower after-hours liquidity, there may be large gaps between the published bid and ask prices.