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NEW BIDS

This new system definitely not good for everyone, I don't see any advantage in this. So for future trading, I would only trade stocks that are less than $3.

 

The new arrangement suppose to improve trading efficiency and market liquidity.

However, the biggest winner for this new bid size is SGX.

They will earn more commission when more buy and sell.

What can you say of this shrew piece of business at the expense of traders on blue chips >$3 like many of us.

Basically, the new changes will not have any impact on shares that trade below $2.99 - i.e. the impact will be localized on securities that trade
above $3.00 and ETFs.

For traders buying into shares that cost $3.00-$9.99, the revised (narrower) bid-ask spread implies that price action must move upwards by  more bids for the same position to be profitable.

Under the old system, shares trading at $3.00 tier would have to increase by 2 bids (with commission of 0.5% per transaction plus other expenses and min bid size of $0.02) for the position to be profitable. Post implementation of new changes, shares trading in same tier would have to move up by at least 4 bids to be profitable. For shares trading between $9.00 to $9.99, the price action must move up by more than 11 bids to breakeven!!!

 

I share de same sentiment at the moment.. de revised bid is somewat not in my favor.. haiz... let's c how it will goes in one month time..

 

the purpose is basically to make sure the prices of blue chips are more stable, hence STI will be more stable. It will make STI appears good artificially, but probably not good for investor/speculator as prices will move slower

 

I am not sure the new system is good or bad.

 

It may be good for either investor or speculator.

 

Just my guess. 

 

I guess with the new bidding system, it will be harder for large cap stocks to make substantial gains. Large cap stocks generally have lower volumes that low cap stocks so the movements are more sluggish.


This new system is supposed to improve liquidity in the markets. Let's see if that really happens in the next few months.

 

this new system not working for me, my venture 10 cents bid become 2 cents bid very hard to climb back to my target price of $13.