Spreads Narrow Dramatically
Traders Magazine, October 2000
Reviewing spreads with his own broker dealer online, Junius Peake, a professor of finance at the University of Northern Colorado, said he observed that the spreads on some trades had already narrowed from 6.25 cents to one cent.
Another academic, Robert Wood, a finance professor at the University of Memphis, said he expects increased use of "smart limit orders" as decimalization takes hold. These automated products use software-based instructions to quickly adapt to changed market environments.
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