With the competition for order flow today, and the high frequency efficiency that exists, the need for price discovery is not what it once was. Our orders will almost always be filled at the best available price. Still, there are times in lower liquidity stocks with wider markets where the midpoint between the bid price and the ask price might not accurately reflect the true value of the spread.
Today, we offer up two specific scenarios where this can happen and what to do about them.
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