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I was watching some sample data from a time & sales window (the tape). There was a "Remarks" column with the comment: Between Bid and Ask. What does "Between Bid and Ask" mean? How can a trade happen between the bid and ask?

If I put in a buy market order, trade settlement price will be the ask price.
If I put in a sell market order, trade settlement price will be the bid price.

Does "Between Bid and Ask" have something to do with limit orders?

*I have asked this question before, but I could not understand the answer.

Ellie K
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Victor123
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1 Answers1

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These are usually the result of large hidden orders.

One way to obscure large purchases or sales is to post hidden fill or kill orders. They do not show on the limit book, and they can be specified to fill completely or partially.

If they are posted between the visible orders and filled, they will show on the tape usually in the way you describe.

A small investor can sometimes catch those orders by walking orders across the spread, reducing the cost basis.