providing real-time stock market prices. As a rule, you buy it often higher than the ask price. If you would like to sell gold, a broker will offer to buy it for the bid price. Just like you couldnt buy 10 Picasso paintings at a great offer price when the seller only has 1 available. My transaction.55 creates the Last price. Like the Bid, the Ask price is constantly changing as traders and investors jostle for position and react to new price information. . 52-Week Range The highest and lowest price a trade has gone through at during the last 52 weeks (one year). Or another Offer could come in.54, thus narrowing the Bid Ask Spread. For a liquid stock that is easy for the market maker to turn around and buy/sell to somebody else, the spread is small (narrow).
The so-called "current" price, then you would enter a limit order for 1000 shares.22. How Much Money Can I Make as a Day Trader.
You can also see the Bids and Asks which are above and below the current Ask and Bid. Each buyer and seller only has so many shares they are willing to acquire or buy at each price level. It looks at the chances of success, income potential, how long it takes to succeed, and how to get started. If the spread is zero then it is said to be a frictionless asset. Their bids are the highest currently bid; and there are others in line behind with lower bid prices. Real-Time and Delayed Bid, Ask, and Last Prices If you have a trading account, it should be providing you with real-time"s. In order for a transaction to occur, someone must either sell to the buyer at the lower (Bid) price, or someone must buy from the sell at the higher (Ask) price. For any transaction to the occur there must be a buyer and seller. The same concepts apply to other markets, such as forex or futures. Bid, Ask, and Last Price Final Word The Bid, Ask, and Last prices represent the current value for a stock. Those with larger trading volumes tend to have many buyers and sellers in the marketplace, and therefore will have smaller bid-ask spreads than those that are traded less often.
The Bid/Ask Spread and How It Costs Investors
Ask Price vs Bid Price - Difference and Comparison Diffen
What is the meaning of bid and ask price?