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The bid–ask spread (also bid–offer or bid/ask and buy/sell in the case of a market maker) is the difference between the prices quoted (either by a single market maker or in a limit order book) for an immediate sale ( ask) and an immediate purchase ( bid) for stocks, futures contracts, options, or currency pairs in some auction scenario.
For example, if a stock price has a bid price of $100 and an ask price of $100.05, the bid-ask spread would be $0.05. The spread can also be expressed as a percentage of the ask price, which in ...
Financial quote. A financial quotation refers to specific market data relating to a security or commodity. While the term quote specifically refers to the bid price or ask price of an instrument, it may be more generically used to relate to the last price which this security traded at ("last sale"). [1] This may refer to both exchange-traded ...
v. t. e. A market maker or liquidity provider is a company or an individual that quotes both a buy and a sell price in a tradable asset held in inventory, hoping to make a profit on the bid–ask spread, or turn. [1] The benefit to the firm is that it makes money from doing so; the benefit to the market is that this helps limit price variation ...
The bid and the ask could differ substantially at times, and you have no control over pricing here. A limit order instructs your broker to execute your trade only at the price you specify or ...
Transaction speed: Day trading requires quick thinking and quick processing, so choose a platform that will execute your trades in seconds, not hours. Tools and customer service: If you run into a ...
The above example is an aggregation of different sources of data, as quote data (bid, ask, bid size, ask size) and trade data (last sale, last size, volume) are often generated over different data feeds.
Since buying and selling stock is a key component of investing, it’s important for investors to understand trading terminology — especially the term "bid-ask spread."