1. I could have a large sell in number 1 position @37c and a large buy @36.5 in pole position any seller in the market has to drop to my buy price and occasionally someone will pay up and chip away " my sell order but I still make 0.5c
2. I can follow other sellers in the queue @37c behind them and buy @36.5 by showing a large sell position people selling look to have to drop to my buy. My using an active trading platform I can actually see where my buy and sell order is in the queue.
3. If I am looking to accumulate in the last 5 minutes each day I can seek to not allow the closing price to rise by selling into my buy order.
I can think of many more reasons but those are easy and I have done a few myself.
Very occasionally it can cost you if someone decides to hit your sell but you have to watch and be aware of each shares trading pattern.
Watch SOL for example if you put a buy order in for 2000 the high frequency trading system that seems to be on that stock seeks to get you to chase it with sales of a few shares moving up all the time - some follow the astute ones just ignore it and later they will get hit. I have seen it move several cents and people follow it up even 10c.
EGO Price at posting:
0.5¢ Sentiment: None Disclosure: Held
