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Selling at a price equal to or lower than the bid price or buying at a price equal to or higher than the ask price.
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∙ 12y ago
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Explain why the bid-ask spread is a transaction cost?
The bid-ask spread is the difference between the bid price (the amount of money you get when you sell) and the ask price (the amount of money it costs to buy). Since the ask price is higher than the bid price, it costs you more money to buy the asset than you would receive should you be selling the same asset. This spread is the price (along with a commission) for making the trade.
What term is there for a difference between Bid and Ask pricing measured in pips?
The term for the difference between Bid and Ask pricing measured in pips is called the "spread." It represents the transaction cost for trading a financial instrument.
What do bid and ask mean in currency conversion?
The bid and ask are the best prices offered by the buyers and sellers.
What is the bid an ask price in commodities?
"Ask" is the price sellers are asking for their commodity. "Bid" is the price buyers are willing to pay.
What is bid and ask in foreign exchange?
The bid is the price that the buyers are willing to pay. The ask is the price that the sellers are willing to pay.
What is bid or ask in the stock market?
It's a term used in most capital markets, so once you learn it in one you will know it in all. The "Bid" is what someone is willing to pay for a security, stock, bond or commodity. The "Ask" is the offer, or what someone is willing to sell at. So for example, let's assume we are oil traders in the pit at the New York Mercantile Exchange (Where Energies are traded.) I might yell, "105 FOR June!" That is my "Bid." This means I am looking to pay 105 per barrel for a 1,000 barrel contract of oil (delivered in June - but that's a whole other story.) You might yell back, "June AT $106!" which is the offer or ask. The difference between the Bid and the Ask is known as "The Spread" BUY - Bid or FOR Sell - At or ASK Now here's where it gets fun . . . Sometimes a client, trader or clerk will ask for a "BID-ASK." A "Bid-Ask" means, "Tell me what I can buy and sell at right now. Not saying what I'm doing yet, just give me the prices."
When you place bid your ebay items Will they ask your credit card at first I accidentally place bid but how come they didn't ask my credit card and i still see the increase bid one?
They do not ask for your credit card info to place a bid on EBay. If you accidently placed a bid you should try to contact the seller to see if they will let you cancel your purchase. If they will not, then you will have to pay for the item if you are the highest bidder.
What does it mean when a share buy and sell price are close together?
The buy and sell price of a stock are referred to as the "bid" and the "ask." The bid is the price that a buyer is willing to pay and the ask is the price that a seller is willing to accept. A narrow spread between the bid and the ask typically means that a stock has good liquidity due to a large volume of shares being traded on an orderly basis. A wide bid/ask spread may occur when shares have low trading volume or when a stock price is under pressure due to an imbalance of buy and sell orders. One method an investor has to prevent overpaying when a stock has a wide trading range is to enter a buy limit order which means the investor instructs his broker to consummate an order only at or below a specified price.
What are bid and ask prices?
Bid is the highest price someone is offering to buy the securities for at a given point in time. Ask is the lowest price someone is offering to sell the securities for at a given point in time. When placing a trade you would typically be buying at the ask price and selling for the bid price.
What is a Bid price and ask price?
I want to sell my car - my asking price is $3,000 but your BID price is only $2,500
How do you get people to bid on your items in the auction for Animal Crossing City Folk for Wii?
Other residents place bids on it!
What is bid and ask rate in forex?
Bid: The price a buyer is willing to pay for a security or goods (Currency pair)Ask: asking price, or simply ask, is a price a seller of a good is willing to accept for that particular security or goods
