medium · Market Microstructure
A trader is analyzing the 5-minute transaction history of a stock. They see a trade at $50.05 where the last trade was $50.00 and the prevailing quote was $50.02 Bid / $50.06 Ask.
Using the Lee-Ready algorithm, how should this trade be classified?
- Inconclusive (Tick Test required)
- Unclassifiable (Midpoint Trade)
- Buyer-initiated
- Seller-initiated
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