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".
14
questions
8
votes
1
answer
2k
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 ...
- 183
24
votes
3
answers
38k
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
"...
- 5,883
3
votes
2
answers
2k
views
How are limit orders executed at market open when the bid price is above the ask price (negative spread)?
In what order and at what price would these orders be executed? Consider the case that both the buyer and the seller submitted orders to their brokers while the market was closed.
It seems logical to ...
- 142
6
votes
3
answers
3k
views
If 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 ...
4
votes
1
answer
160
views
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....
- 16.9k
1
vote
2
answers
551
views
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 ...
- 49
0
votes
0
answers
69
views
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 ...
2
votes
1
answer
1k
views
What does it mean in a stock when the Bid volume is 100x higher than the Ask volume?
I'm trying to understand how a certain stock fluctuates, I noticed periods recently when the Bid/Ask volume looks like 50,000/500 give or take. What does this mean in human language in terms of ...
- 145
2
votes
4
answers
746
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 ...
- 16.9k
2
votes
2
answers
147
views
Bid/Ask when trading ETFs?
Let's say it's an index-tracking ETF. Isn't the ETF price determined by the index value? Why does it have bid/ask spread then? Could someone explain the bid/ask concept when trading ETFs?
- 298
0
votes
1
answer
633
views
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.
...
- 3
0
votes
2
answers
190
views
Do market makers (equities, equity options) continually adjust bid / ask quotes or only adjust after they receive orders?
I’m stuck between two fields of thought, and I’m curious if anyone knows how this works in practice?
On one hand, if the MMS have a bid and ask based on current supply and demand and nothing changes,...
- 1
0
votes
3
answers
800
views
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 ...
0
votes
1
answer
54
views
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,...
- 135