Bid and ask in the stock market are similar. Here's how it works: Bid: Bid is the highest current price on record 19 Nov 2018 While investing in the stock market, futures or forex trading in Dubai, you are likely to come across terms like bid price, ask price and last price. The bid and ask are the prices that govern all trading activity. Bid vs Ask. So, what do you think the bid is out 23 Sep 2008 Essentially, the BID is the price at which a buyer or market maker is willing to buy a security. If you owned shares in a stock, say AuthenTec, and 6 Feb 2009 Bid-ask pricing is very much tied up with the familiar concept of supply and demand, and to many newcomers to the share market it can be 20 Feb 2015 This is the price you want for your shares of stock. You see that Acme is currently trading at $100 a share, so you might quote an ask price of 18 Oct 2016 Knowing the bid-ask spread percentage for the stocks you intend to price at which a market-maker will buy the stock is known as the bid,
A stock quote includes more than just the last price. It also includes its bid and ask price. The bid price is the best available price for sellers, as it reflects the highest price that somebody Stock Market Ask and Bid Price Definitions. Bid and ask prices are the key components of a stock quote. When an investor comes to the market to buy or sell a stock, a quote tells him the lowest price at which he can buy (the ask) and the highest price at which he can sell (the bid). The easiest way to understand it He later realizes that the current stock price of $173 is the price of the last traded stock of Security A and that he paid the asking price of $173.10. Considering the Bid-Ask Spread The difference between the bid and ask prices is referred to as the bid-ask spread. If the bid price for a stock is $19 and the ask price for the same stock is $20, then the bid-ask spread for the stock in question is $1. The bid-ask spread can also be stated in percentage terms; it is customarily calculated as a percentage of the lowest sell price or ask price. Difference Between Bid and Ask Price of Stock. The bid rate refers to the highest rate at which the prospective buyer of the stock is ready to pay for purchasing the security required by him, whereas, the ask rate refers to the lowest rate of the stock at which the prospective seller of the stock is ready for selling the security he is holding.
 their floor traders call out bid and ask prices in Cantonese in the trading .
19 Nov 2018 While investing in the stock market, futures or forex trading in Dubai, you are likely to come across terms like bid price, ask price and last price. The bid and ask are the prices that govern all trading activity. Bid vs Ask. So, what do you think the bid is out
The bid-ask spread is the range of the bid price and ask price. If the bid price were $12.01 and the ask was $12.03, the bid-price spread is $.02. If the current bid is $12.01, and a trader places a bid at $12.02, the bid-ask spread is narrowed. Highly liquid stocks. Consider the bid-ask price on 3M Company ( MMM - ) , a highly-traded large capitalization stock. A current glimpse (and the bid-ask does change all the time) has the stock's bid at $189.24 and the ask is at $189.28 - for a bid-ask spread of four cents. Low liquidity stocks. It is important to note that the current stock price is the price of the last trade – a historical price. On the other hand, the bid and ask are the prices that buyers and sellers are willing to trade at. In essence, bid represents the demand while ask represents the supply of the security. The bid-ask spread works to the advantage of the market maker. Continuing with the above example, a market maker who is quoting a price of $10.50 / $10.55 for security A is indicating a willingness to buy A at $10.50 (the bid price) and sell it at $10.55 (the asked 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.