Videos

Basics of the Bid, the Ask, and the Bid-Ask Spread in Stock Trading

If you want to purchase shares right away, you are going to have to pay the asking price. Similarly, if you want to sell shares right away, you have to pay the bidding price.

Bid:
-What people are looking to get the order at
-If you want to purchase 100 shares of Nike, you might bid $50.90, but the ask is $50.98
-In order to get that order, you need to pay $50.98

Ask
-What people are looking to get for the stock

Bid-Ask Spread
-It is the difference between the bid and the ask
-What the market makers have to make
-i.e. $50.98-$50.90 = $0.08
-$0.08 is what the market makers get paid to execute that order
-As soon as you purchase the stock you lose $0.08 per share
-You can’t buy and sell immediately because it will be costly
-You need to take the bid-ask spread into account when trading

#bidstocks #askstocks #stocktrading #bidaskspread #biddefinition

Posted at: https://tradersfly.com/blog/basics-of-bidask-and-bid-ask-spread-in-stock-trading/

???? GET MY FREEBIES

Freebies

???? SUBMIT A VOICE QUESTION

Question – Hungry for Returns

???? START HERE: FOR NEW TRADERS

Start Here – for New Traders

???? START HERE: OPTION TRADERS

Start Here – Option Traders

???? MY CHARTING TOOLS + BROKERS

tools

???? MY COMPUTER EQUIPMENT

Resources: Computer Gear

???? GET THE NEWSLETTER

YouTube Newsletter Signup

???? SEE OUR MEMBERSHIP PLANS
https://tradersfly.com/go/members/

???? STOCK TRADING COURSES

See All Our Trading Courses

???? STOCK TRADING BOOKS:

Our Stock Trading Books

⚽ GET PRIVATE COACHING

Coaching for Stock Traders

???? WEBSITES:

Home Version 2.0

Home Page

Homepage 2.0

Home

Home

???? SOCIAL MEDIA:
https://tradersfly.com/go/twitter/
https://tradersfly.com/go/facebook/

⚡ SUBSCRIBE TO OUR YOUTUBE CHANNEL
https://tradersfly.com/go/sub/

???? MY YOUTUBE CHANNELS:
TradersFly: https://backstageincome.com/go/youtube-tradersfly/
BackstageIncome: https://backstageincome.com/go/youtube-bsi/
MyLittleNestEgg: https://mylittlenestegg.com/go/youtube/

???? ABOUT TRADERSFLY
TradersFly is a place where I enjoy sharing my knowledge and experience about the stock market, trading, and investing.

Stock trading can be a brutal industry, especially if you are new. Watch my free educational training videos to avoid making big mistakes and just to continue to get better.

Stock trading and investing is a long journey – it doesn’t happen overnight. If you are interested to share some insight or contribute to the community we’d love to have you subscribe and join us!

Articles You May Like

Top Wall Street analysts prefer these dividend stocks for steady income
DP World shelves £1bn UK investment pledge ahead of summit
Municipals cheapen ahead of another heavier supply week
Inside a high-tech parking garage where robots valet park your car
MSRB: Third quarter trade count steadily above the million mark