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Had to chuckle but apologies . checked a few web sites and also couldn't find it.
Basically its the difference between the bid and ask price entered into the stock market book at the opening. eg buy 100p sell 95 with a spread of 5p. This can be a large misleading spread as when other entries are added within those values the spread becomes very much smaller I believe it is called Margarine spread because it is not butter or the real thing (perceived) Within a short period of time the spread between buy and sell diminshes substantially.
If at the opening you watch the share price on here you will get an idea of what happens. You can get caught in the margarine spread if you trade at the very open. Also there is overnight orders which can be placed but putting a limit price can obviate the catch in the opening spread.
Hope this helps somewhat but the phrase may have gone out of use since I was trading rather than investing.
Bob
At the risk of making your day Bob.. I want to inform you that I tried to Google margarine spread and when I only got results about soft yellow stuff I added share trading into the box . But no success.it reminded me of my friend who was a motor mechanic and he had the usual treatment from the older mechanics when he was 16 and they told him to go to the stores and get a radiator for an air cooled VW... And then to get a metric adjustable spanner... And finally asked if he wanted to try some sweets by the name of clitor** juice fruits..
At the risk of making your day Bob.. I want to inform you that I tried to Google margarine spread and when I only got results about soft yellow stuff I added share trading into the box . But no success.it reminded me of my friend who was a motor mechanic and he had the usual treatment from the older mechanics when he was 16 and they told him to go to the stores and get a radiator for an air cooled VW... And then to get a metric adjustable spanner... And finally asked if he wanted to try some sweets by the name of clitor** juice fruits..
Nardniles
Very very wise words. Somebody once said "Education ,education, education " and in trading and investing(there is a difference to be aware of here) this is of paramount importance. I am continually amazed at the spread of expertise of the contributors to this board and especially those with in depth and extended Centamin knowledge and the gold mining industry in particular. all generously passed on to those of us less informed and able.
Bob
Thanks for the help. I'm fairly new to trading and I eagerly read all your comments esp the big beasts here and hope to learn what I can.
Hi Nardniles
Forgot to mention the effect at or immediately after the market opens called the " Margarine spread" If you google it will explain further wide spreads at start of trading.
Bob
Hi Nardniles
Very observant of you. If a broker has a large order to fill for an important client then in early trading with lesser liquidity there are opportunities to take advantage of small entries into the book creating large swings to their advantage one way or the other.
If a large order then the entry into the book can be delayed and if you follow the RNS you will see these large delayed trades struck perhaps the previous day or ven longer if the holding by the client exceeds the number of shares which the LSE require to be announced. The reverse is of course true where the Institutional investor falls below the share holding required to be announced. Rather a complicated explanation I am afraid but added into the mix is the effect of short time day traders taking a 2% gain and momentum traders again working within an algorithmic technical analysis basis.
Not much help I am afraid but thought your observant post deserved response
Bob
It seems traders are creatures of habit. Every morning I watch the sp carefully.. Usually straight up. Then straight down with profit taking.. And a couple of false attempts at up on that way down as ppl try to see where it'll start to climb. Then 2 to 4 hrs of small rises and drops 1 or 2 %over opening price.. Then slow climb in the afternoon to finish 3%ish up.
Am I being too simplistic or are traders generally like this