Tuesday 18 July 2017

7 Difference Between Bid And Ask Price

1.  The bid and ask are the best potential prices that buyers and sellers are willing to transact at.
2. The bid for the buying side, and the ask for the selling side.
3. The bid price represents the maximum price that a buyer or buyers are willing to pay for a security. 
4. The ask price represents the minimum price that a seller or sellers are willing to receive for the security.
5. Bid-ask spreads can vary widely depending on the security and the market. 
6. The blue-chips that constitute the Dow Jones Industrial Average may have a bid-ask spread of a few cents, while a small-cap stock may have a bid-ask spread of 50 cents or more. 
7. The bid-ask spread can widen dramatically during periods of illiquidity or market turmoil.


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