BID Quote question?

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Why can they buy at 12.51 but not at 12.59? and the size of the ask is 300

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Hi! This is a hard question and we get a lot of messages about this one.

The key concept here is that the market maker takes the customer’s order. To give a simple example:

MM quotes 100 x 200, 3 x 4

This means:

  • The MM will buy up to 300 shares at a max price of 100 each
  • The MM will sell up to 400 shares at a min price of 200 each

The customer’s orders are reversed:

  • The customer can sell up to 300 shares at a max price of 100 each
  • The customer can buy up to 400 shares at a min price of 200 each

Hope this clears it up!