When buying stocks what does bid and ask mean

Posted: Varezhka Date of post: 09.07.2017

How to Buy Stock: 4 Smart Steps for New Investors - NerdWallet

When it comes to actually buying and selling shares of stock, the exchanges act more like flea markets than centers of financial sophistication. Unlike most things you buy, both the buyer and seller set stock prices.

The buyer states what price they will pay for the stock — this is the bid price. If you have access to the proper online pricing systems, you can see the bid and ask prices.

The Nasdaq structures its pricing around the bid-ask. You will notice that the bid price and the ask price are never the same.

when buying stocks what does bid and ask mean

The ask price is always a little higher than the bid price. What this means is if you are buying the stock you pay the ask price the higher price and if you are selling the stock you receive the when buying stocks what does bid and ask mean price the lower price.

What happens to the difference between the two prices?

when buying stocks what does bid and ask mean

This is not the same commission you pay a retail broker. See my article on market main forex di indonesia. Using Trailing Stops to Protect Stock Profits.

Bid Ask Size | The Online Investor

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when buying stocks what does bid and ask mean

Stocks Trading Basics Understanding Stocks Evaluating Stocks Retail Stocks Active Stock Trading. Updated August 10, The seller also has a price — the ask price. Get Daily Money Tips to Your Inbox Email Address Sign Up.

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