If ask and bid prices are different , how come the trades still progress on.?
Well im trying to cram more or less stock souk, and i dont undestand if the ask and bid prices are different home come near are still trades going on? For a trade to verbs, doesnt the the price the salesperson requirements and the price the buy is predisposed to reward enjoy to game?
For example today i be watching the divx stock, and ask price be 18.89 and the bid price be 18.87, and the bid price didnt run up and the ask didnt progress donw, but shares still be traded? isnt ask the lowest possible price?
Answers:
what is going on at hand, is that you hold buyers and seller contained by colossal volumes that are at the bid / ask prices you outline.
An individual merchant might come surrounded by beside and lower their ask to 18.87 (a) 100 shares. That trade will cross, because nearby are buyers at $18.87
Once that trade clears though, the ask is still $18.89.
If you be looking at the actual trade video, you would see that the bid and ask both go to $18.87 but one and only for a moment as that trade crossed.
No sir this is not correct thinking. Bid and Ask prices are the prices that you draw from via trading on the exchange, and the difference is call the "Bid/Ask" spread. This spread is determined by a few factor, probably the most essential one the liquidity of the protection, and the spread is vitally a charge you pay packet for using the exchange.
Bid will typically other be lower, ask will other be better.
This is also true for other securities, currencies, ect. not basically stocks.
Because the crooks on wall street catch together and "breed a deal".
Because most of the time you trade near a specialist / bazaar designer who is maintain an orderly marketplace contained by a shelter. He is usually on both sides of the transaction - i.e. of a mind to buy FROM you at $18.87 and deal in TO you at $18.89 a specified amount of stock. The spread is what he make on respectively transaction.
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If ask and bid prices are different , how come the trades still move about on.?
Investing query?
For example today i be watching the divx stock, and ask price be 18.89 and the bid price be 18.87, and the bid price didnt run up and the ask didnt progress donw, but shares still be traded? isnt ask the lowest possible price?
Answers:
what is going on at hand, is that you hold buyers and seller contained by colossal volumes that are at the bid / ask prices you outline.
An individual merchant might come surrounded by beside and lower their ask to 18.87 (a) 100 shares. That trade will cross, because nearby are buyers at $18.87
Once that trade clears though, the ask is still $18.89.
If you be looking at the actual trade video, you would see that the bid and ask both go to $18.87 but one and only for a moment as that trade crossed.
No sir this is not correct thinking. Bid and Ask prices are the prices that you draw from via trading on the exchange, and the difference is call the "Bid/Ask" spread. This spread is determined by a few factor, probably the most essential one the liquidity of the protection, and the spread is vitally a charge you pay packet for using the exchange.
Bid will typically other be lower, ask will other be better.
This is also true for other securities, currencies, ect. not basically stocks.
Because the crooks on wall street catch together and "breed a deal".
Because most of the time you trade near a specialist / bazaar designer who is maintain an orderly marketplace contained by a shelter. He is usually on both sides of the transaction - i.e. of a mind to buy FROM you at $18.87 and deal in TO you at $18.89 a specified amount of stock. The spread is what he make on respectively transaction.