Jump to content
  • 0

What is a bid Ask?



1 answer to this question

Recommended Posts

  • 0

Hi Milan,

Bid-ask can also be called the bid and offer. A bid-ask, therefore, is a measured two-way price quotation that highlights the best possible price at which a security can be traded (bought and or sold) at any given point in time.
 The highest price a buyer is willing to pay for a stock or security becomes the bid price and the asking price is the lowest price a seller is willing to accept for the same security.
A trade is executed when the buyer and the seller agree on a common bid and ask price for the same security. The agreed price must therefore not be lower than the asking price and not higher than the bid price.
The resultant difference between the bid and ask price or the spread for a particular security or asset, therefore, becomes the indicator of the level of liquidity for that same security or asset.

Link to comment
Share on other sites

Join the conversation

You can post now and register later. To reply to this question, sign in or create a new account.

Reply to this question

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.


  • Create New...