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Questions tagged [bid-ask]

For questions related to the pricing details of securities in markets where there exists the notion of "resting orders" or an "order book".

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do bid volumes and ask volumes represent completed trades

There is a number beside the current bid price and a number beside the current ask price. Do these numbers represent the volume of trades completed at the bid and ask prices or pending completion?
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62 views

How to estimate the average cost-per-share of a not-very-liquid ETF purchased with a market order?

I'm a Canadian resident and a few months ago I bought a US-listed Vanguard ETF of European stocks (VGK). There was a Canadian-listed version of this ETF (VE), but I chose the US-listed one because the ...
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3answers
231 views

How to remember and not to mix the bid and ask prices

Maybe it seems a very silly question but I think it is not. I am working as developer for a firm and I have a huge problem to remember and distinguish what the bid and the ask prices are. I know that ...
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1answer
68 views

Bid and ask… no limit orders [duplicate]

So I'm understanding that the bid is the price buyers are willing to pay for a stock, and ask is the price sellers are willing to sell for. But what if there are no limit orders... only market orders....
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Is market frozen when orders are executing

Looking around I haven't found an answer to this simple question. My understanding: When the bid price exceeds the ask price (can you call this negative spread?) then orders start to execute. ...
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2answers
38 views

Is the limiting factor in the volume of the options market options sellers or option buyers?

For example, options trade volume is less than that of equities, and most option trading is concentrated amongst a small group of top companies. However, that doesn't mean that there are profitable ...
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2answers
102 views

Why would a stock have a 30% spread (between Ask and Bid)?

If I am understanding this correctly, if I wanted to buy this stock, market price is $129 ish. If I want to sell, I'll get about 30% less, $98 ish. That seems like a huge spread. What are typical ...
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0answers
87 views

What exactly happens during Forex transaction?

We are talking about Forex market. I want to figure out what exactly happens when I process a transaction on this market. Can you please correct me if I'm wrong: Assume we are working on EURUSD pair ...
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3answers
440 views

Would a market buy order execute at a ridiculous ask price?

I was looking at a Vanguard ETF after the market had closed. The ETF usually trades in the 80 dollar range. I was looking to put in a market order for some shares that would execute the next morning ...
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1answer
157 views

Why doesn't the bid/ask reflect my ask price on a spread options position I am trying to get rid of?

I entered this trade in about a week ago. It's always been under the ask but the ask never reflects my ask. Why?
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3answers
698 views

How to set a sell limit order that will actually execute?

I'm having trouble getting a good answer to this with Google. I'm also new to this. Haven't actually tried it yet. I have several hundred shares of a security that I'm hoping to sell. Let's say bids ...
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1answer
44 views

Bid Tick and Ask Tick

Is it possible to have a bid tick that goes down and an ask tick that goes up at the same time? That's to say a down tick for bid and up tick for ask at the same time or when a bid tick is up so will ...
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318 views

Bid/Ask Price Clarification [Real examples]

Bid: $148.94 Ask: $149.05 Price $149.20 (Market) Can someone explain to me why my final purchase price with the market price doesn't equal to $149.05? From my understanding, isn't that the minimum ...
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2answers
127 views

Understanding cryptocurrency buying and selling calculations

I need to understand how buying / selling works in crypto markets. I see an ask of amount: 44608.01, rate: 0.98 in the XRP/USD market in Kraken. Will the rate 0.98 be in USD or XRP? I'm assuming USD ...
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132 views

How do bid/ask sizes always end up being exactly hundreds of shares, rather than (for example) 84 shares?

Let's say stock XYZ has a bid price of $15.00 with a size of 400 and an ask price of $15.50 with a size of 1100. My understanding from reading on Investopedia is that these size numbers (400 and 1100) ...
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1answer
229 views

Why does high frequency trading remove small bid-ask spreads?

"The major benefit of HFT is it has improved market liquidity and removed bid-ask spreads that previously would have been too small." - Investopedia "The size of the bid-ask spread from one asset ...
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1answer
144 views

Market makers role

I'm trying to understand the role of a market maker, so the best bid and offer depends on where orders are resting, and these orders are from retail investors or institutions or whoever, why is it ...
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1answer
305 views

What is market order's relation to bid ask spread?

Say the bid ask in one scenario is 100/101 and in another scenario it is 90/98 ( hypothetical, for the same stock ). I want to hit a market buy order. In the second case ask is lower ( 98 ) but the ...
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1answer
101 views

Why the order was not filled though there was a last price at the moment, but no bid price?

On the Line price chart I see the last trade price was 18,26 with the volumes of 200. At the same time the best bid price is 18 and the best ask price is 18,29. I have placed an odd lot to sell 47 ...
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2answers
1k views

Help Understanding Market/Limit Orders and Bid/Ask Price

Kid gloves... this might be a stupid question, but I haven't found a real clear answer to this. So I understand that market orders are orders to execute at current market prices and that the price ...
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1answer
279 views

How is the value of (crypto)currencies determined?

My question concerns the valuation of currencies (specifically cryptocurrencies such as bitcoin). I understand that at any given point there may be people looking to sell currencies, the lowest of ...
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1answer
69 views

On a exchange's “recent trades” list how is a trade designated as either a sale or a buy?

If a maker is making an "ask" and then this is met by a buyer, would that be listed as sale or a buy on the "recent trades" list ? Specifically I am using the trades list on the Kraken exchange.
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Backtesting daytrading strategy, how to handle the spread?

I am currently developing a daytrading application which based on rules and algorithms buys or sells stocks, which right now might buy/sell a stock in the magnitude of 100 per day. I am trying to ...
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1answer
164 views

Can a limit order be fullfilled with a better price than offered? [duplicate]

When a limit order is fulfilled, is it always at the specified price? In other words, is it possible that a buy (sell) order will be completed with a lower (higher) price?
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33 views

Can I use the terms ask and bid in a service market? [closed]

I am writing a document for which: there are companies that set a price for the service they provide there are users that set the price for which they are willing to pay for the service Can I call ...
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119 views

Is it possible to “Buy Up the Ask”?

If Level II for a given ticker is showing that the top ten sell orders currently displayed total 25,000 shares. Then a buyer were to enter a market order for 25,000 shares, would the order "buy up" ...
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2answers
2k views

How do hidden orders affect bid/ask price?

I am little confused on basic bid-ask concepts. Let's suppose I have a BUY order i.e I want to buy shares. I can either place the order at BID price, lower than BID price or higher than bid price....
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1answer
401 views

bid & ask prices and technical indicators

I have a data set with historical prices (forex but I'm assuming it can be about stocks as well) - open, low, high, close - but there's two of each - bidopen, askopen etc. I want to use those data for ...
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1answer
295 views

What mean that a `Bond` has no bid-ask value?

From what I've seen, most Bonds have no bid-ask value. What does that mean exactly? Supposition 1): Nobody is trying to buy or sell this Bond. In this case, which is a good value to estimate the ...
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1answer
679 views

Can a retail trader do bid-ask spread scalping through algo-trading?

Is it legal/permitted in the US public stock markets for an individual retail trader to do bid-ask spread scalping through algorithmic trading? Do I need to follow some procedure before I can ...
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2answers
433 views

How does the spread on an orderbook affect shorting?

Say I wanted to short ABC Company because I believe the stock price will go down 7% or more. The ask price is $6 and the bid price is $5. Volume is 4-5 Million shares. I decide to short $2000 dollars ...
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777 views

bid/ask bid volume/ask volume and tick data

So far i've only traded some on plus500. Here are my questions: I don't really understand how things work in the background. I've understood that the ask price is the best sell offer available, the ...
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6answers
1k views

Why do I get a much better price for options with a limit order than the ask price?

When I'm buying an option, I notice that if I set a limit order for in between the ask and bid - say half way, I can often get the option at that price. Why is it that way? I thought the ask price ...
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2answers
808 views

Setting a trailing stop loss at $39.70 bid price, stock sold at $41

I just set a trailing stop loss on some stock I had before the correction we are going through right now for 10% below the bidding price. This means at $39.70, the stop loss should have been ...
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1answer
1k views

What is the final price if the bid price exceeds the ask price in an order driven market? [duplicate]

Let's assume a very simplified situation. There is only one seller asking for 10$ and there is only one buyer bidding 20$. At what price would the transaction go? Some answers say it won't, because ...
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1answer
188 views

Bid-ask spread in order-driven stock market

The bid-ask spread can be used to measure transaction costs in a quote-driven OTC market. Can one also use the bid-ask spread to measure transaction costs for an order-driven market?
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130 views

How can I affect implied volatility of an option?

Implied Volatility represents the actual above-market premium an option contract trades for at any point in time, but it changes in mysterious ways. If I wanted implied volatility to be higher, could ...
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3answers
25k 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 "...