In the context of stock trading, the bid price refers to the highest amount of money a prospective buyer is willing to spend for it. Most quote prices as displayed by quote services and on stock tickers are the highest bid price available for a given good, stock, or commodity. The bid and ask prices are stock market terms representing the supply and demand for a stock. The bid price represents the highest price an investor is willing to pay for a share. The ask price represents the lowest price at which a shareholder is willing to part with shares. The bid is the price of a stock for a buyer, while the ask represents the price a seller is willing to accept on the trade. The mathematical difference between the bid and the ask is known as the The bid/ask spread is $0.01 in active stocks. For example, the bid is $10.05, and the offer is $10.06. In active futures markets, the spread is typically one tick. The Forex market isn't centralized, so it sees more variation in the bid/ask spread, but it will range from 0.1 to 1.5 pips in active pairs. Certain large firms, called market makers, can set a bid/ask spread by offering to both buy and sell a given stock. For example, the market maker would quote a bid/ask spread for the stock as $20.40/$20.45, where $20.40 represents the price at which the market maker would buy the stock.
The Ask (or selling) price represents the willingness of a seller to sell shares of stock at that price. The size columns make reference to the number of shares that 27 Jul 2019 If you want to be a stock trader, you need to know what the bid and ask is. This means you can decide to wait for the price to come to you. 28 Aug 2019 Bid/ask spreads are wide, trading volume seems absent, it's difficult to This means you might have to sell your stock at an unfavorable price if 28 Nov 2016 The following visual explains what the bid and ask prices represent: Bid When trading a share of stock or an option, you can get filled on your order which means trading products with a narrow bid-ask spread is preferred.
At any given point, a stock, bond, option or any other financial instrument that is actively traded will have a bid and ask price. Both prices are quotes on a single share of stock. The bid price is what buyers are willing to pay for it. The ask price is what sellers are willing to take for it. If you are selling a stock, you are going to get the bid price, if you are buying a stock you are going to get the ask price. A bid price — usually referred to simply as the bid — is the highest price that a buyer (i.e., bidder) is willing When trading stocks, bonds, currencies or other securities, the prices that the buyer and seller deal with are slightly different. The bid-to-ask volume of a stock can help you better understand current market sentiment and potential future price action. The Basics of Reported Trades Stocks are quoted "bid" and "ask" rates. The difference between the bid and ask prices is called the bid/ask spread. With coveted, actively traded stocks, the spread will be just a penny or two. For stocks that are not as heavily traded, the spread will start to widen. Exchange listed stocks may see spreads in the 5 to 10 cent range. If you are looking to sell stock, now you know there is a firm willing to pay (that's the bid side of the market) $20 for your stock, and that you could sell at least 1200 shares of stock at that price. Those are the two parts of the bid side of a market on a stock: the price and the quantity of shares at that price.
In essence, the bid is the price that an investor is willing to pay to buy a particular stock, at a given time, and the ask is the price for which an investor is willing to sell a stock at a
Retail goods are usually sold for a static price, stocks however can be purchased at different prices with these prices reflected in the offer or ask price and the bid