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A six-cent signal in a ten-cent market

A stock is quoted 24.9524.95 bid, 25.0525.05 offered. Your model says the mid, currently 25.0025.00, will rise about 66 cents over the next few minutes.

If you enter and exit with market orders, does the signal make money? What are your alternatives?

Show a hint

Measure each market order against the mid, and remember you pay to get out as well as to get in.

Your answer

This one is open-ended. Work it through, then check your reasoning against the full solution.

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