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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."
What else can I help you with?
Is it possible to place a bid higher than the ask price in a stock market transaction?
No, it is not possible to place a bid higher than the ask price in a stock market transaction. The bid represents the maximum price a buyer is willing to pay, while the ask price is the minimum price a seller is willing to accept. The bid and ask prices must align for a transaction to occur.
What is the relationship between bid volume and ask volume in the stock market?
The relationship between bid volume and ask volume in the stock market is that the bid volume represents the number of shares investors are willing to buy at a certain price, while the ask volume represents the number of shares investors are willing to sell at a certain price. These two volumes help determine the supply and demand for a stock, which can influence its price movement.
What is the difference between bid size and ask size in the stock market?
The bid size is how many shares a buyer wants to buy. The ask size is how many shares a seller wants to sell.
Can you explain the difference between bid and ask stock prices?
The bid price is the highest price a buyer is willing to pay for a stock, while the ask price is the lowest price a seller is willing to accept. The bid price is what you can sell a stock for, and the ask price is what you can buy a stock for.
Meaning of bid in share market?
In the share market, a "bid" refers to the price that a buyer is willing to pay for a share of stock. It represents the demand side of a financial transaction, where investors indicate how much they are prepared to spend to acquire shares. The bid price can fluctuate based on market conditions and investor sentiment, and it plays a crucial role in determining the market price of a stock when matched with an ask price from sellers.
Is it possible to place a bid higher than the ask price in a stock market transaction?
No, it is not possible to place a bid higher than the ask price in a stock market transaction. The bid represents the maximum price a buyer is willing to pay, while the ask price is the minimum price a seller is willing to accept. The bid and ask prices must align for a transaction to occur.
What is the relationship between bid volume and ask volume in the stock market?
The relationship between bid volume and ask volume in the stock market is that the bid volume represents the number of shares investors are willing to buy at a certain price, while the ask volume represents the number of shares investors are willing to sell at a certain price. These two volumes help determine the supply and demand for a stock, which can influence its price movement.
Is there a place to screen for stock options that are bought at the ask price?
All stock options are bought at the ask price. There is no such thing as buying at bid price unless you are a market maker bidding for options in the open market.
What is the difference between bid size and ask size in the stock market?
The bid size is how many shares a buyer wants to buy. The ask size is how many shares a seller wants to sell.
Can you explain the difference between bid and ask stock prices?
The bid price is the highest price a buyer is willing to pay for a stock, while the ask price is the lowest price a seller is willing to accept. The bid price is what you can sell a stock for, and the ask price is what you can buy a stock for.
Do you buy at the bid or ask price when trading stocks?
When trading stocks, you typically buy at the ask price and sell at the bid price. The ask price is the price at which you can buy a stock, while the bid price is the price at which you can sell a stock.
What is the current bid-ask volume for the stock XYZ?
The current bid-ask volume for stock XYZ is the number of shares being offered for sale (ask) and the number of shares being sought to be bought (bid) at a given price.
What is the difference between the price to buy and the price to sell stocks?
The difference between the price to buy and the price to sell stocks is known as the bid-ask spread. The price to buy, also called the bid price, is the amount a buyer is willing to pay for a stock. The price to sell, also called the ask price, is the amount a seller is asking for the stock. The bid-ask spread represents the cost of trading a stock and is influenced by factors such as supply and demand, market conditions, and the stock's liquidity.
What is the difference between the bid and ask prices in stock trading?
The bid price is the highest price a buyer is willing to pay for a stock, while the ask price is the lowest price a seller is willing to accept. The difference between the bid and ask prices is known as the spread, which represents the cost of trading a stock.
What is the difference between the bid and ask stock price?
The bid price is the highest price a buyer is willing to pay for a stock, while the ask price is the lowest price a seller is willing to accept. The difference between the bid and ask price is known as the spread.
What is the difference between bid and ask bonds in the bond market?
In the bond market, the bid price is the highest price a buyer is willing to pay for a bond, while the ask price is the lowest price a seller is willing to accept. The difference between the bid and ask prices is known as the bid-ask spread.
What is the difference between the ask and bid price of a stock?
The ask price is the price a seller is willing to accept for a stock, while the bid price is the price a buyer is willing to pay for the stock. The difference between the two is called the spread.
