medium · Market Microstructure
A trader executes a market buy order for 500 shares of a stock at an execution price of $150.05. At the time of the trade, the National Best Bid and Offer (NBBO) is 149.98 × $150.08.
What is the effective spread for this transaction?
- $0.10
- $0.07
- $0.04
- $0.02
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