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 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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Does a market-maker make any money in a liquid asset with tight bid-ask spread?
In a liquid asset like SPY, is there any market-maker making markets? It seems that with such tight spreads, there is no incentive for the market-maker to operate in this underlying. But then, again, ...
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Market-maker's *ask* below current *bid*
I am reviewing some market-maker raw data and sometimes I see the following happening. The market-maker quotes an ask price that is below the current bid price (of let's say, the market itself). How ...
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Do market-makers always quote a bid and ask simultaneously?
I am trying to understand some market-maker (MM) data that I have. As a follow-up to a question I read about MM and to this piece of information on Investopedia,
Market makers must maintain ...
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Why am I unable to buy at the ask price?
I was trying to buy ProShares Short Dow30 ETF (NYSE Arca: DOG). I put in a limit order at the ask price not the bid price since I want the order to execute all at once. The ask price is a penny more ...
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Do I pay bid-ask spread if I trade on the NYSE?
From what I understand from this market-maker versus specialist discussion on Investopedia, the job of the specialist is to bring buyers and sellers together as opposed to a market-maker who buys from ...
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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 ...
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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
"...
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