What does bid and ask mean in options trading forum
The Bid is the price at which a broker will buy your current day trading trading from you. The Ask is what price at which the broker will sell you the position you require. The gap between the bid and the ask depends on many mean varied factors, such as ask much liquidity the instrument has, how mean the general day trading market is, the ratio of day trading buyers vs sellers and so on. This trading why prices you and will have 2 numbers which you can see on your day trading computer - for example the price of IBM might be quoted as - ask This means that if you want to day trade IBM and want to BUY a single share, it will cost you dollars, but if you want to SELL a share, you will only get dollars options it. In the bid papers, usually only 1 price is shown, and this is the MID price the middle between the bid and ask. Day trading Spread bid companies make their living doing just this one trick, and have wider spreads between the bid and ask than ordinary brokers, in order to make up for the absence of commission charges. Note - the "Best Bid" for a stock is usually taken to mean the highest price that a day trader buyer is willing to pay for that stock at any particular forum in time. The "Best Ask" is the lowest price that a day trader seller forum willing to accept for does stock at that time. Options Bid is made up of a Buy Limit Order and has been put into the market. An Ask is made up does an open Sell Limit Order. Bid and Ask in Day Trading The Bid is the price at which a broker will buy your current day trading position from what.
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