New answers tagged

3

As with everything else it is determined by competition: little or no competition => very high fees (or more correctly large bid-ask spreads). That is one reason why many IB try to develop new derivatives: they can be very profitable when no one else trades them yet. Then the cost comes down somewhat when competitors come in. Lack of transparency in pricing ...


3

Typically due to news overnight, and sometimes, as you suggest, after hours trading. The stock prices you see in the chart are the prices at which trades occurred. Trades are discrete events, at discrete prices. The discontinuities you see in the chart are simply due to the market agreeing a different price on the following day. Those discontinuities occur ...



Top 50 recent answers are included