Wide Open

Dictionary Says

Definition of 'Wide Open'

The gap between a stock's bid price and the ask price at the commencement of trading. A wide open often occurs when there is a scarcity of competitive bid and ask prices or when trading has been suspended for whatever reason.
Investopedia Says

Investopedia explains 'Wide Open'

This situation can arise because market makers and market participants have yet to submit their bid and ask prices to the market, leaving very few (uncompetitive) orders to appear as the lowest ask and highest bid price.

Wide opens are generally indicative of a thinly-traded stock, i.e. an issue that is not very liquid. Many Over-The-Counter Bulletin Board and pink sheet stocks (penny stocks) routinely feature wide opens, as well as wider bid-ask spreads throughout the trading day. Wide opens and higher spreads can make it difficult for momentum traders and others to gauge market direction.

Articles Of Interest

  1. How To Outperform The Market

    Active trading is an investing style that aims to beat the market. Find out how it works, and whether it will work for you.
  2. Losing To Win

    Adopting realistic expectations is essential to staying in the trading game.
  3. Limiting Losses

    It is impossible to avoid them completely, but there is a systematic method you can use to control them.
  4. Look Towards Small-Caps For Big Dividends

    Small-caps can be a fruitful place to gain high yields.
  5. Exploring European Options

    The ability to exercise only on the expiration date is what sets these options apart.
  6. Understanding Small- And Big-Cap Stocks

    If you don't realize how big small-cap stocks can be, you'll miss some good investment opportunities.
  7. Which Mutual Fund Market Cap Suits You?

    Different funds invest in companies with different market caps. Find out which is right for you.
  8. How To Identify A Micro-Cap Scam

    Discover how to distinguish a real investment opportunity from a fraudulent one.
  9. Finding Undiscovered Stocks

    Wall Street tends to focus on large cap stocks, leaving other stocks under-followed and undervalued.
  10. Market Capitalization Defined

    Find out the differences between mega-, large-, mid- and small-cap stocks and how each suits different investing styles.
comments powered by Disqus
Marketplace
Hot Definitions
  1. Zomma

    An options greek used to measure the change in gamma in relation to changes in the volatility of the underlying asset.
  2. Yield Elbow

    The point on the yield curve indicating the year in which the economy's highest interest rates occur. The yield elbow is the peak of the yield curve, signifying where the highest interest rates occurred.
  3. Xenocurrency

    A currency that trades in markets outside of its domestic borders.
  4. Wanton Disregard

    A standard of severe negligence. Wanton disregard is a very serious accusation that indicates that a person behaved extremely recklessly.
  5. Ultra ETF

    A class of exchange-traded funds (ETF) that employs leverage in an effort to achieve double the return of a set benchmark.
  6. Toehold Purchase

    A purchase of less than 5% of a target company's outstanding stockmade by an acquiring company. A toehold purchase of just under 5%, while not a significant stake in a firm, allows the shareholders a "toe-holds" grip on the company and its decision making.
Trading Center
http://sp.fastclick.net/ad/tr/10858-64082-15546-0?mpt=7f74d69ba143109e4e3b8471df0d4fac