What is the Bid Price and Ask Price of a Stock?
There are three terms determined for stock prices.The Bid Price refers to the highest price that a buyer is willing to pay for certain number of stocks.
The Ask Price also referred to as Offer Price is the lowest price that a seller will accept. As a rule, the Bid Price is almost always lower than the Ask Price.
The Average Stock Price represents the average cost of shares or stocks bought at different prices over time.
BID AND ASK PRICE
When you place a market order through your online stock broker, you're agreeing to buy at the next available Ask Price or sell at the next available bid price. The order goes through if in the market there's buyer for the Ask Price and seller for the Bid Price.
|
|
|
The Bid- and Ask Prices can be traced through various online platforms, including financial websites, trading platforms where you are provided a wide array of option like charting, stock scanning, etc., and brokerage accounts. Dependent on the source you are following and the spread brokers use, actual prices might very different because of various delay-times these platforms feature, and it largely depends on your subscription type. Free options more often than not entail delayed data that can be used for long-term investment or comparison but useless for Intraday Traders. You can track stocks' average price through global financial websites like Yahoo Finance but keep in mind as a Day Trader you can't rely your buy- and sell decisions upon these sites' average price.
Battle Inflation
Monster
Create From-Home
Career
Act for a Luxury Life
Key Takeaways
» A stock's Ask Price is the price at which you can buy and the Bid Price is at which you can sell one share.» Commonly Ask Price is higher than bid price.
» The spread represents the difference between these prices.
» A security's average price refers to the average cost of shares bought at different prices over time.
» You can trace Ask and Bid Prices on financial websites or through an online brokerage account.
» The spread can differ on websites.
» Average price is not intended to be used for real stock trading, especially not for Day Trading but it's a useful tool when analyzing stocks.
|
|
|
WHAT IS SPREAD
Be the first to exploit the true potential of Positive News relevant to US Stocks that will outperform others on the given day. Get the latest BNA Premarket News Updates at your fingertip about breakouts to rake in handsome profit in matter of 5 minutes to 2 hours. Elevate your Level of Living to astronomical heights.
14-Day FREE
Trial
NO Credit Card Needed |
