FIN 376: 2 Assignments: Trading 1 and IBrokers Intro

See the IBrokers assignment here:  http://complete-markets.com/wp-content/uploads/2014/09/IB_IBrokers_Intro.html

Trading assignment:

In groups of 2 or 3 you should complete the following trades and questions.  During class show me you have completed your trades using the Account Management  section of your IB account. You will answer the questions at the same time you show me your trades.

Trades:
1.  Buy 327 shares of RHT at the market.
2.  Short 41 shares of AAPL at the market.
3.  Use a limit order to buy 500 shares of ECA at the lowest price you can (while still executing the trade).  The group who buys ECA at the lowest price will get a bonus.
4.  Use a limit order to sell short 80 shares of GS at the highest price you can (while still executing the trade).  The group who shorts GS at the highest price will get a bonus.
5.  Place a stop loss order on your RHT shares.  Place the order such that it is unlikely to be executed - so I can see it in your pending trades.
6.  Place a stop loss order on your AAPL shares.  Place the order such that it is unlikely to be executed - so I can see it in your pending trades.

Questions:
1.  How large, on average, is the bid/ask spread on EGAS.  If you buy and sell $10,000 worth of EGAS how much will the total transactions costs be (commissions and the spread paid to the market maker)?
2.  How large, on average, is the bid/ask spread on NEE.  If you buy and sell $10,000 worth of NEE how much will the total transactions costs be (commissions and the spread paid to the market maker)?
3.  How many shares would you have to buy to increase EGAS’s ask price by $0.05?
4.  How many shares would you have to buy to increase NEE’s ask price by $0.05?

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