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1answer
74 views

What do the Sizes on Bid/Ask Quotes Mean?

I have a basic question regarding equities. For this example, assume that I have a quote for KO stock which says the following: Current Price = $39.00 | Bid = 38.99 x 6800 | Ask = 39.00 x 4300 What ...
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1answer
83 views

Bid/ask spreads for index funds

Let's assume for simplicity that each company in the S&P 500 has the same market capitalization, and has a share price of 1$. Further, assume the fund allocates 1% for operation costs. So when I ...
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3answers
99 views

Does a bid and ask price exist for indices like the S&P500?

When buying a stock (say Google or Apple) at day 1 you pay the ask price of that day. When selling the stock at day 6, you get the bid price of that day. The return you made is given by [ ...
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1answer
35 views

To minimize the spread costs in shopping in the North or Europe

I just noted that my Norwegian Nordea's Visa Debit card's spread is 2,56% when I pay my shoppings with it in Estonia: >>> a=7.33 // Google showed this course in its search by 1 EUR in ...
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1answer
133 views

The spread goes to the market maker, is the market maker the exchange?

I understand that the bid-ask spread is the difference between the price a buyer is willing to pay and the price a seller is willing to take for an asset. I also understand that this difference goes ...
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2answers
63 views

Can I convert spread option into regular call or put?

I have bought spread call on stock X. After that point, the stock went up and came back. My short position is the same price as it was when I bought it 1 month back. At this point If I just clear out ...
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1answer
219 views

Why is there such a large spread on bid/ask during extended trading?

I've noticed on a few stocks (NYSE:WHR, NYSE:PHM), that during extended hours trading, the bid/ask spread becomes extremely large. For example: Mar14th WHR closed at ask $78.10, and bid $78.30, and ...
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1answer
86 views

International Bank Account Only For USD For Student

I am not sure whether I use the right terminology in the heading, since I call the bank account which has only USD "international bank account" because it is not in euros. I need only USD for online ...
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1answer
188 views

To minimize spread costs in Shopping Online

I get my income in euros. I need to pay stuff in USD because I use shops which base-currency is USD such as Dealextreme. I have Visa Debit card so not the real Visa, since I am a student but have ...
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2answers
2k views

How does a dealer (or market maker) earn the bid-ask spread on a stock?

If I am correct, dealers purchase assets for their own accounts, and later sell them for a profit from their inventory. But the spreads is the difference between buy (or "bid") prices and sell (or ...
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2answers
1k views

Italy BTP vs. German Bund spread. Care to explain?

I hear a lot of chatting about BTP/Bund spread recently. I am not familiar with this concept. Could you explain what it is and what it means, in layman's terms?
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3answers
103 views

Broker fees: Who gets the spread?

If one uses an online brokerage, or like my bank which offers me 100 free trades per year and I thus have no broker, who gets the spread?
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1answer
248 views

Stock spread: wide vs. narrow?

At First Time Investor - Stock market spreads, the author states: For smaller companies the spread can be as wide as 15-20pc. That means the shares would have to go up as much 20pc before ...