Basics of the Bid, the Ask, and the Bid-Ask Spread in Stock Trading
Bid:
-What people are looking to get the order at
-If you want to purchase 100 shares of Nike, you might bid $50.90, but the ask is $50.98
-In order to get that order, you need to pay $50.98
Ask
-What people are looking to get for the stock
Bid-Ask Spread
-It is the difference between the bid and the ask
-What the market makers have to make
-i.e. $50.98-$50.90 = $0.08
-$0.08 is what the market makers get paid to execute that order
-As soon as you purchase the stock you lose $0.08 per share
-You can’t buy and sell immediately because it will be costly
-You need to take the bid-ask spread into account when trading
#bidstocks #askstocks #stocktrading #bidaskspread #biddefinition
Posted at: https://tradersfly.com/blog/basics-of-bidask-and-bid-ask-spread-in-stock-trading/
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