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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How does a stock's order book determine which trades to execute first?

Let's say for a hypothetical stock "S", the current bid and ask prices are $9.00 and $11.00 respectively. To my understanding, these prices are at the top of the order book and represent the ...
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How to read CDs: price vs yield vs bid vs ask?

I'm trying to understand CDs by comparing the two: NAME CLOSING PRICE CLOSING YIELD CURRENT BID YIELD CURRENT BID PRICE CURRENT ASK YIELD CURRENT ASK PRICE Mountain Commerce Bank 99.68 5.694% 99....
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How market orders are filled?

When we look at the stock price S of a stock, then if I am correct S is equal to the average between the highest bid and the lowest ask for this stock. Hence since the highest bid is lower than the ...
ConfusionMatrix's user avatar
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Does Sell Call/Sell Put affect a share price

I am using a option flow provider that cost about $99 a month. Its filter by default only trigger on "Ask/Above Ask" for call & put , but Bid/Below Bid (namely sell call/sell put) is not ...
Baoky A New Programer's user avatar
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Triggering a conditional sell order on the bid price

I recently set up a trailing stop sell order for an illiquid security that was triggered by the bid price going above a certain threshold. My rationale to trigger on the bid price was an attempt to ...
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Why bid price is used while calculating Forex cross rates?

I was trying to understand how Forex cross rates work. Different articles on internet uses bid price of currency to identify it's current value. My question is, why do they chose bid price and not ...
KnowledgeSeeeker's user avatar
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Best way to determine price of an asset based on set of seller and buyer offers?

Lets say we have a fungible asset (stocks, gold, currency, crypto, etc.) that is freely traded on a market. The way this works is that people can submit buy and sell (bid and ask) offers. If a sell ...
user2741831's user avatar
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How can the ask price be higher than the bid price in the stock market? [duplicate]

I recently checked the bid and ask price in the Apple stock, and I found that the ask price was higher than the bid. Why is this? Apple Stock Image I thought that bid was supposed to be higher than ...
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For a trade bid must be at least the ask, but what price is actually chosen when they are not equal? [duplicate]

Example: I put in a buy order for one share at $100 Someone puts in a sell order for one share at $90. Clearly this will result in a trade. But at what price?
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How is Ask calculated on an exchange?

How are Bid and Ask calculated? If someone offers to sell a single share of a stock at twice yesterday's price at closing, does that inflated price become the Ask? Or is Ask an average of some kind, ...
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Who's on the other side of very illiquid option contract trades?

So I've been short selling Deep-in-the-Money, far from expiration Put Options on an ETF for about a year now, to profit from upward price movements on the underlying and time premium decay. Volume for ...
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option best ask doesn't move unless I place an order lower than the best ask

as in the picture.Before I placed an order.The best ask was 0.35 and did not move at all.This option's volume was very low. And then I placed a 0.30 sell order, size was 73. Suddenly the best ask size ...
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Bid/Ask volumes on stock markets

I recently got into buying some low volume stocks (mostly at NYSE) and noticed that sometimes when I buy/sell I get slightly different execution cost then when I hit the sell/buy button. I've figured ...
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What is bid size and ask size in wealth simple?

I'm new to wealthsimple app and wanted to know what some numbers mean. If we look at Microsoft stock for example and look at these numbers shown in the app: Bid $259.87 x 17,481 Ask $259.90 x 10,387 ...
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Does the difference between a marketable limit order's price and the bid-ask price influence the priority of the order?

A stock is $10 bid and $11 offered. Alice places a marketable buy limit order with a limit price of $12 per share. At exactly the same time, Bob places a marketable buy limit order with a limit price ...
Flux's user avatar
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When I buy a stock, should I track the bid price?

If I bought a share for $1000 (bid: $996, ask: $1000) and I want to take a profit of $20, should the stock price move up by 2% (20/1000) or 2.4% (20/1000 + 4/1000)?
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Ask & Bid yield calculation problem

Does anyone know how the ask and bid yields are calculated on this corporate bond? I tried to use BEY calculation but I keep arriving at different answers. Does anyone know what the $500K means? If ...
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Why didn't my buy limit order become the highest bid?

I am trying to buy a stock that is $307 bid and $312 offered. I placed a buy limit order for 1 share at $307.10. However, the best bid remained at $307.00. After an hour, the best bid is still $307.00....
Flux's user avatar
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Should I consider the bid-ask spread as part of the transaction cost of a market order?

When I place a market order or marketable limit order that successfully executes, should I consider the bid-ask spread as part of the transaction cost of my order? The bid-ask spread is appears to be ...
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Bid and asked confusion on a scam site? [duplicate]

Which price is for the buyer here?
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Asked or Bid price which one is right

I recently bought shares on a market where I normally buy and we're confirmed at asked price sorry not bid please see attached pictures and number of shares were confirmed and a congratulations note ...
JOY MATSOSO's user avatar
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In over-the-counter markets, shouldn't price takers attempt to match each other's prices?

From what I understand, a market maker buys at bid price and sells at ask price, whereas the price taker involved with the market maker buys at ask price and sells at bid price. Basically, the market ...
David Cian's user avatar
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Mechanism of sudden bid-ask spread changes

Bid and ask chart are sometimes very different in its shape, like this bid chart and ask chart (USD/JPY, @OANDA platform). At around 7:00AM on its ask chart, ask price ranges between 103.580 to 103....
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Bid/Ask spead for an ETF

I have been looking here for the information on the Bid/Ask spread of the Vanguard Ftse All-World Units Etf A on the Italian market. Here it is reported "Ask: n.d. X n.d" and "Bid: 84,...
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Volatility and Call Options

Say I own an in-the-money call option that I want to sell for profit. I learned that higher volatility leads to an increase in the "price" of a call option in order to compensate for ...
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Is a hidden order that's higher than the bid price prioritized over the bid price?

For example. If the bid price is $1.00 and the ask price is $1.02, and I submitted a hidden order to buy at $1.01, my hidden order will be prioritized over the $1.00 bids, right? I'm asking because I ...
frosty's user avatar
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Waiting for Bid vs. Ask [duplicate]

Does a person make a profit when the bid price is higher than what was originally paid for the share? I know that you buy the ask, sell the bid, but if I ask to sell a share at a higher number than ...
Ethan's user avatar
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Confusion on Bid vs. Ask and Spread; Profits

Stock A has a bid price of $100.08, an ask price of $100.10 and a last trade price of $100. I take that to mean that if I buy the stock at $100.10 then I will have lost a total of two cents. How does ...
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Bid volume greater than offer volume, but price increasing. Why is this?

I'm looking at a 1-minute chart of NQ prices. Using a CQG data feed that provides bid and offer volume. Every minute over a given 5 minute period, the number of shares traded at BID was greater than ...
Neville Nason's user avatar
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Can market makers decrease/increase supply or demand?

I didn't fully understand the concept so i have a question, What I have understood so far is the market makers have a stock inventory and they make quotes about bid and ask price to provide liquidity. ...
leonidas efrem's user avatar
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Why there are lot of 100 shares packs in Stock Exchanges?

I just checked live Bid/Ask Quotes for XPeng Inc (XPEV) in Nasdaq website and i notice that there are lot of 100 volume trades. Also i chekced other stocks and they also have same trades of 100 volume....
leonidas efrem's user avatar
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Backtesting using only Bid or Ask Price

I have a dataset containging one minute bid OHLC prices for a particular stock. Would it be reasonable to back test a trading strategy based on this data that only has bid prices? I am asking this ...
Stat's user avatar
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What causes stock orders to execute outside the NBBO?

I was reading Stocks Order Routing and Execution Quality on Robinhood's help pages, which says: For example, in the third quarter of 2020, 97.53% of our customers' market orders for S&P 500 stock ...
Flux's user avatar
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Why do market makers sometimes quote absurd bid and ask prices rather than remove their quotes?

The image below shows the Level 2 bids for Fortescue Metals Group Ltd (OTCQX: FSUMF) on 2020-10-07 10:20 am: Notice the 0.01 × 10,000 bid by NITE (Virtu Americas LLC), which is extremely unlikely to ...
Flux's user avatar
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Why wouldn't a stock sell below the bid-ask spread?

In the TD Ameritrade cellphone app and in the browser site (I tried both) in post market after hours, I can't seem to sell Facebook at $261.06 a share even though the bid is 261.30 and the ask was 261....
Lowbrow's user avatar
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How are retail forex brokers different from betting shops?

I'm struggling to find differences between bookmakers and retail forex brokers (e.g. OANDA). The former deals with horse racing, greyhound racing and sports, while the latter deals with currency ...
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2 votes
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How do locked markets get resolved in a low-volume market?

Consider a low-volume exchange-traded security that sometimes sees no trading volume for days on end. Examples of such securities are some bonds, preferred shares, SPACs, and ETFs listed on the NYSE ...
Flux's user avatar
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What is causing large bid/ask spread in IEX top of book data?

I have been collecting data and experimenting with back testing algorithmic trading strategies. Admittedly I am not experienced in this domain and have been trying to build my understanding. I just ...
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Can off-exchange trades take place at prices outside the bid-ask spread?

Suppose the national best bid for an illiquid stock is $10, and the national best ask is $12. Alice wants to buy 1,000,000 shares, but the daily volume of the stock is lower than the amount she wants ...
Flux's user avatar
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1 vote
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What are "regional bid and ask prices"?

I was reading Schwab's market data catalog. Excerpt: NYSE Pro New York Stock Exchange (NYSE) offers Level I quote data for all NYSE-listed stocks and ETFs, providing: • Trades • National Best Bid and ...
Flux's user avatar
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Are publicly available bid, ask, and last prices reliable when many trades take place outside stock exchanges?

From my understanding, zero-commission trades are possible because stock brokers place orders for stocks on third-party platforms instead of placing orders on stock exchanges. The third-party ...
Flux's user avatar
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Question about BID vs ASK at the start of Day Trade

So I have been monitoring this IPO recently. Day trade starts and we are allowed to post bid and asks for 30 minutes before the market officially opens. I see asks for around 40 for 4500 shares. ...
Screaming-Cow's user avatar
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What does it mean if the spread is temporarily shown to be 0?

In cryptocurrency/trading what does it mean if the spread is temporarily shown to be 0 (see diagram below)? There were no bids (or asks) on the order book at that time Market data was not available ...
caketestico's user avatar
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4 answers
835 views

How do market makers profit from the bid-ask spread when bids are almost always lower than asks?

I am familiar with how currency exchange booths at airports make some of their money: from the bid-ask spread. For example, they will say: "you can sell us 1 USD for 1.32 CAD, and you can buy 1 USD ...
Flux's user avatar
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Bid and Ask Trading

The Bid price I've always taken it to mean the price market participants are willing to buy at. Therefore if I want to go sell shares I would sell it at the bid. Opposite way around for the ask. That'...
Mathlearner's user avatar
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Forex: Where does the order book come from?

For stocks, which I am familiar with, some stock brokers provide access to level 2 data from NYSE and NASDAQ. Level 2 data is also available for some OTC stocks. I am now exploring the foreign ...
Flux's user avatar
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Can you move stock prices through a single orders?

Imagine that a stock costs 100$, you set a limit buy order at $105. Wouldn't this cause the bid/ask spread to jump upwards? Of course this order would get filled immediately, but shouldn't it get ...
Michael Hu's user avatar
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340 views

How do option prices change so quickly when stock price moves up or down?

It would take me at least 3 seconds to modify an existing order. When stock price rises or falls quickly, how do buyers and sellers change their prices so quickly? Do they really calculate option ...
Bhanu's user avatar
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If the bid price is the same, what determines who gets the stock first?

For example, if there's already 500 bids for a stock at $1.00 and I put down 100 bids for $1.00 as well, does it mean if someone wants to sell for $1.00, it has to go through the 500 bids before me ...
frosty's user avatar
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Putting it all together: bid, ask and last prices

I have recently started to trade options and am having trouble putting together the bid, ask and last prices. Let me tell you where I am currently at and please correct me if I got anything wrong. ...
Whazzup's user avatar