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".
108
questions
0
votes
1
answer
47
views
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 ...
0
votes
1
answer
332
views
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....
- 298
2
votes
1
answer
93
views
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 ...
0
votes
1
answer
31
views
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 ...
0
votes
3
answers
106
views
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 ...
- 143
1
vote
1
answer
36
views
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 ...
- 353
2
votes
1
answer
62
views
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 ...
- 821
0
votes
0
answers
58
views
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 ...
- 1
0
votes
0
answers
33
views
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?
- 101
1
vote
1
answer
48
views
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, ...
- 129
1
vote
1
answer
137
views
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 ...
- 3,100
0
votes
1
answer
55
views
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 ...
- 139
0
votes
1
answer
64
views
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 ...
- 123
1
vote
1
answer
174
views
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
...
- 113
0
votes
1
answer
54
views
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 ...
- 16.9k
8
votes
3
answers
2k
views
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)?
- 927
3
votes
1
answer
115
views
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 ...
- 31
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
201
views
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 ...
- 16.9k
-3
votes
2
answers
155
views
Bid and asked confusion on a scam site? [duplicate]
Which price is for the buyer here?
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 ...
0
votes
1
answer
70
views
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 ...
- 183
1
vote
1
answer
79
views
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....
- 111
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
1
vote
1
answer
77
views
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 ...
- 121
0
votes
1
answer
100
views
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 ...
- 119
-1
votes
1
answer
56
views
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 ...
- 49
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
3
answers
829
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
179
views
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.
...
3
votes
1
answer
260
views
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....
1
vote
1
answer
248
views
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 ...
- 111
2
votes
1
answer
305
views
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 ...
- 16.9k
3
votes
2
answers
546
views
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 ...
- 16.9k
0
votes
2
answers
157
views
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....
- 151
1
vote
5
answers
351
views
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 ...
- 1,232
2
votes
1
answer
171
views
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 ...
- 16.9k
0
votes
2
answers
639
views
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 ...
- 103
0
votes
2
answers
218
views
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 ...
- 16.9k
1
vote
1
answer
135
views
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 ...
- 16.9k
1
vote
1
answer
91
views
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 ...
- 16.9k
0
votes
1
answer
126
views
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. ...
0
votes
1
answer
1k
views
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 ...
- 101
2
votes
4
answers
755
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
0
votes
1
answer
83
views
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'...
- 13
0
votes
1
answer
208
views
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 ...
- 16.9k
0
votes
1
answer
65
views
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 ...
2
votes
1
answer
334
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 ...
- 21
1
vote
1
answer
216
views
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 ...
- 119
0
votes
1
answer
652
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