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The bid–ask spread (also bid–offer or bid/ask and buy/sell in the case of a market maker) is the difference between the prices quoted (either by a single market maker or in a limit order book) for an immediate sale and an immediate purchase for stocks, futures contracts, options, or currency pairs in some auction scenario.
For example, if a stock price has a bid price of $100 and an ask price of $100.05, the bid-ask spread would be $0.05. The spread can also be expressed as a percentage of the ask price, which in ...
The market data for a particular instrument would include the identifier of the instrument and where it was traded such as the ticker symbol and exchange code plus the latest bid and ask price and the time of the last trade. It may also include other information such as volume traded, bid, and offer sizes and static data about the financial ...
Since buying and selling stock is a key component of investing, it’s important for investors to understand trading terminology — especially the term "bid-ask spread."
The highest bid and the lowest ask are referred to as the top of the book. They are interesting because they signal the prevalent market and the bid and ask price that would be needed to get an order fulfilled. The difference between the highest bid and the lowest ask is called the bid–ask spread.
For instance, if a trader submits a limit order to buy 1,000 shares of MSFT at $28.00, this order will appear in a market maker for MSFT's book with a bid of $28.00 and a bid size of 1000. The difference between the bid and ask price is known as the bid–ask spread.
For example, if the offer (or "ask") price for a stock is $25.00 for 100 shares of a stock on one exchange and $24.50 for 100 shares of the same stock on another exchange, and a broker has a customer who wishes to purchase 150 shares of the stock, then the broker is required to purchase all of the shares available at $24.50 on behalf of the ...
A bid price is the highest price that a buyer (i.e., bidder) is willing to pay for some goods. It is usually referred to simply as the "bid". In bid and ask, the bid price stands in contrast to the ask price or "offer", and the difference between the two is called the bid–ask spread. An unsolicited bid or purchase offer is when a person or ...
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