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Buy/Sell Spread for Shares

Discussion in 'Medium/Long Term Investing' started by Zaxon, Feb 11, 2019.

  1. Zaxon

    Zaxon The voice of reason

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    You do all your research - share XYZ is the perfect share for you to buy right now! You check its liquidity, only to find it has an average buy/sell spread of 8%. OK, next!

    You pay the spread twice: once when buying, and again when selling. Let's assume you're holding this stock between 3 months and 3 years.

    What is the maximum average buy/sell spread you're prepared to pay?
     
  2. tech/a

    tech/a No Ordinary Duck

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    Put a bid anywhere in between
    You don’t have to buy or sell at market
     
    cynic likes this.
  3. Zaxon

    Zaxon The voice of reason

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    True. Depending on the liquidity, that might mean you don't get to buy/sell that day if the other parties don't move.
     
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