Further to the discussion on "Can someone explain a stock's "bid" vs. "ask" price relative to "current" price?"Chris W. Rea answered: In a stock market, the bid and ask are the best potential prices that buyers and sellers are willing to transact at: the bid for the buying side, and the ask for the selling side.
The example he then provided made perfect sense to me, essentially, it means you would want to sell at the highest possible bid and buy at the lowest possible ask. However, what is the point for posting your own bid and ask? Given that you buy at other market participant's ask (not your own bid, which is the price you are willing to pay), and that you sell at other market participant's bid (not your own ask, which is the price you are wiling to sell), anyway?
I hope my question made sense.