3
$\begingroup$

I was trading various stocks on the market, and I often see that stocks have their price, much higher or lower, than the Bid and Ask. Also, as the Bid and Ask move in real time, the price moves too, but it stays far above/below the Bid and Ask Here is an example with ARRY: enter image description here enter image description here

My question is, How can this be possible? If the stock's official price, is the price of the last trade, how can it stay below the Best Bid, or above the Best Ask?

$\endgroup$
7
$\begingroup$

I don't see this issue in Bloomberg, therefore I would assume it is just bad data in your source. Based on my snaps I suspect that your bid-ask is 15 min delayed.

This stock is very active today, therefore I would be surprised if this is due to stale marks.

Edit: in reply to your comment

Below are simultaneous snaps from Bloomberg and Yahoo Finance at 20:14 UK time. They agree on the price of 6.20, but while Bbg give bid-ask 6.20-6.21 Yahoo gives 6.13-6.14. On my Bbg screen the price was 6.13 about 15 mins ago (at 20:00 UK time, see chart).

enter image description here

enter image description here

enter image description here

$\endgroup$
  • $\begingroup$ I was watching the Bid and Ask change in real time on a per-second basis. Since the data is from Yahoo Finance, I do not think it is delayed. What is strange is that the price was updated on a high frequency in real time too, but it stayed below the bid and ask $\endgroup$ – Victor2748 Sep 26 '16 at 19:27
  • $\begingroup$ @Victor2748 see edit above $\endgroup$ – Kiwiakos Sep 26 '16 at 19:47
  • $\begingroup$ Ahh I see. Thank you for pointing it out. By the way, how can I access Bloomberg API or data? $\endgroup$ – Victor2748 Sep 26 '16 at 20:05
2
$\begingroup$

notice the size of the moves on your two stocks. The bid-offer is moving very fast but the last trade might of occured seconds ago. so its a stale price. you should only look at the bid-offer, thats what matter. last trade kind of meaningless.

$\endgroup$
  • 1
    $\begingroup$ The last trade price was updating and the volume was increasing. Therefore, there were trades being executed, but far below the bid and ask. Whenever a trade is executed, the new price should be either at Bid, Ask or in between. It was being updated below the Bid, while the Bid and Ask did not move. $\endgroup$ – Victor2748 Sep 26 '16 at 19:22

Your Answer

By clicking “Post Your Answer”, you agree to our terms of service, privacy policy and cookie policy

Not the answer you're looking for? Browse other questions tagged or ask your own question.