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Re: frogdreaming post# 79762

Friday, 10/31/2008 1:51:20 PM

Friday, October 31, 2008 1:51:20 PM

Post# of 82595
"frogdreaming," That is incorrect. When someone places a buy limit order which is higher than the current bid, that normally causes the bid to increase to the new bid price. We're seeing sales below the highest bid price, which is _not_ normally how the market works. Bid and ask are not supposed to be arbitrary and ignored at a whim. The normal behavior can easily be observed by watching live quotes (including bid/ask data,) and through services like the following, where you see how bid and ask are formed/delimited, by people's limit orders:

http://datasvr.tradearca.com/arcadataserver/ArcaBook.php