Bid / Ask Spread | Trading Terms

[@eliie9627]

You look like Michael from Grand Theft Auto 5

[@xEndless_Gaming]

Eli Ie 😂😂

[@royal.desert]

I have watched at least 5 videos trying to learn what Bid/Ask means and this is the first video that made me go "ohhh, so thats what it means and thats what I need to keep an eye out for" Thank you so much!!! Im from America and I love the accent!

[@SupratimBhowmick]

Perfectly explained in simple words.

[@johnholme783]

Chrystal clear, thank you. Yes the spread is the brokers commission. So generally speaking the spread correlates with the market volume, that is the greater the volume the narrower the spread and vice versa, the less the volume the greater the spread.

[@gabrielayan9251]

The way you express your idea is clear and concise! Thank u so much

[@tamikabostic6976]

You explained this perfectly! Thank you. I look forward to watching more of your videos,

[@johnny-S]

What is missing from the video is when to show the Bid or Ask price on a chart. As I realized (to my cost) that this makes a significant difference to where you place a Stop-Loss line on a chart.

[@godfreypoon5148]

Bid and Ask are like matter and antimatter. If they ever end up at the same point, they annihilate each other and your computer explodes.

[@dreamspacepresident3356]

Funny enough, when you said this, T212 still had 5 forex pairs *with zero spread*.

[@Pete_YNWA]

Beautifully explained. shame you don't do any videos anymore

[@bal20]

That couldnt have been explained better. Very helpfull, thanks

[@trochetiaboutic5278]

Thank you David, well & clear explanation

[@elio271158]

Hi David. Thanks for the video, very easy to follow. I have just started learning all of this and just confused about the buying and selling. I see the selling price is less than the buying price, which doesn't make sense to me unless I decide to buy and wait for the price to increase. And the selling is something else altogether. Hope I have made myself clear enough. thanks again.

[@Trading212]

Hey Elio, it's great to know you're finding our videos helpful. The difference between the Buy and Sell prices represents the spread fee, which for equities is charged by the stock exchange and applies for each share you wish to invest in. As always, in case you have any other questions, you're welcome to contact us via any of our support channels 24/7.

[@jean6168]

Thank you for the video!

[@davidk4682]

Excellent explanation. Brilliant really. Thank you very much David. Job well done, as usual.

[@FreePhalestineOAllah]

Very well explained . many thanks

[@Breesey]

Very clear, good work

[@12345bookworm12345]

You're talking about bid and ask offers, but on the trading 212 I'm not seeing any option to place a bid/ask offer. You can only buy at the current price, you cannot place any offers of your choice. So how are these buy/sell prices computed then? Are there any other brokers that allow you to bet like that? If so, is the bid/ask price that we're seeing on trading 212 just a mirror of the offers from other brokers?

[@Lorant1984]

Thanks for the explanation. Who profits from the "spread" though? Is it the trading platforms?

[@salardz]

Good video. Simple and effective. What platform or brokage do you use for currency exchange market? Thanks.

[@thomaseriksson6256]

Good information

[@Jen8973]

so great thank you but I wanted to ask a question if the spread is really tight say 5 pips how do you actually make money of your buying higher and selling lower shouldnt that mean then you trading at a loss? Im new new to all this and find it a little puzzling. thank you

[@lancepheng]

why cant i drop a limit order on the chart and drag it around on the chart?

[@queenace1872]

I totally understand how you explain that..

[@2MinuteRatio]

Thank you David, excellent as always.

[@ZeeNasir1]

Informative. Thanks

[@darren-g7776]

Great video . Really helped

[@FreePhalestineOAllah]

I am not able to see bid and sell price on live Trade 212 on ISA Account.Could you please help to know how to see these prices next to each other on 212 platform. many thanks

[@EvilKris]

thanks a lot, you're a good teacher.

[@MelroyvandenBerg]

I don't see 'zero spread' in my T212 listing :\?? No results found it says.??

[@DrewKivsar]

I cant help but ask the question. A lot of companies are sharing trading ideas and that you only need to profit 50% of the time to profit with the right money management plan. Since there are only 2 ways the chart will go, would it be fair to say that you have a 50% chance of profiting from each trade no matter your strategy providing you stuck to your money management plan??

[@davidjones2452]

Good question! You have a 50% chance of profiting from each trade (ignoring the spread) But what does for most people is they let their losses go too far. So, when they are wrong they lose $100 and when they are right they make $50. So the 50% coin flip approach falls flat on its face! It does highlight the importance of money management and letting profits run.

[@theincredibleaf5965]

Hi David, please in a future video can you explain how market cap and volume influence individual currency value. Thanks.

[@SeanTheDon17]

Great Video as always David. This is such a simple concept but Can still confuse many people, including myself. Looking forward to more and more of your great videos!

[@brianhoneyman9368]

Hi David Started trading few weeks ago on I phone , trying too work out how the % is calculated in the green box, the account value. I understand the free funds + Marin part. But how is the % going up an down. An one more question, what is a save range too keep that % at. Enjoying all your videos Thanks

[@davidjones2452]

Hi - if you mean your account value, that is going to fluctuate depending on your profit or loss on open positions.

[@satishjoshi321]

pls tell us more about GAP UP and GAP down and how to protect the loss due to GAP DOWN.

[@Sadik.72]

Can I show the spread visually so I can see visually how far the market needs to move to make profit, like a bar of some sort, ive seen other apps that enable me to do this and it's very useful.

[@Trading212]

Hi Sadik, you may want to enable the Buy price option from the Chart Settings menu in the web app. This will display the Buy price as a line on the chart. The gap between the lines of the Buy and Sell price for the trading instrument in question is the spread.

[@dreamspacepresident3356]

You can both individually (de)activate '"BUY" PRICE' and '"SELL" PRICE' in the chart settings (web platform), which will show those lines/numbers in the chart. You can also switch the chart to be displaying the buy price instead of, like it does by default, the sell price. Maybe interesting to know: While the broker IG has a great web platform (easily better than T212), it can not show the buy and sell price line simultaneously, like most platforms (incl. T212) can.

[@TonyStark-ir8ke]

Hey I have a request. Could you do a video on Kyle Model? And also Glosten Milgram model...

[@TraderZer0]

So the lower the spread the cheaper it is if you buy or sell?

[@marciosalvador685]

This is a great video with lots of detailed information. Now, like everything there will be people critizing it. David Jones don't try to make every body happy, you re not beer!

[@fadhelshak3342]

Hi, i have one q for u.. if we buy limit curency, which price will hit our stop loss? Bid price or ask price

[@Trading212]

Hi Fadhel, a Stop Loss order assigned to a long position with a CFD instrument will be triggered at the sell/bid price.

[@fadhelshak3342]

Trading 212 thank you sir

[@lee-roymurphy2603]

Hello.like the videos you post.Im from Namibia.can recommend any good broker with tighter spreads on fx pairs?

[@denniswise1460]

What trading platform are this?

[@valybreak913]

Trading 212 CFD has PDT rule ?

[@user-ug3rj4ij9j]

Do ETFs have spreads?

[@vaultvon2126]

great vid. thank you

[@stephaniesolomon802]

So there is no cost to trade on a zero spread currency? In a zero spread market, I can enter at 1.025EURO/USD and if it remains a zero spread I will not lose money but I will not make any until there is a spread. So is it safe to say a zero spread occurs in consolidation?

[@Trading212]

Hi Stephanie, if you are trading with a Zero Spread instrument, no spread will be applied upon opening the position. That is the only difference compared to trading with an instrument with spread.

[@dreamspacepresident3356]

I played with T212's five zero-spread forex pairs a lot. (Too bad they phased them out by now.) Yes, if the price stays (or returns) exactly to where you opened the position, and then you close it - you will not have made or lost ANY money. Mind that this is not generally true all across forex trading land. If ever you'd encounter a zero spread pair again (Unlikely.), there's also the possibility that the account type you're trading with charges you a small commission fee for each trade. I have such an account at the moment with a different broker. The benefit is that the spread is extremely low, so scalping (Which by the way T212 prohibits you from doing.) is possible.

[@mikelCold]

How does a zero spread work?

[@sylvesteramas]

How do you trade with forex to make profit?

[@MyCuddlyToys]

How to set up bid and ask price on platform

[@MelroyvandenBerg]

Limit order you mean?

[@furleysbrain]

Hey is anybody using the full Trading212 broker??? I've been trialling the demo for a few weeks now. I like it. But would like to hear opinions.

[@Ghofy]

Thank you⚡️

[@mikefuller5457]

I understand that it is the cost of doing business but where does the spread monies end up?

[@davidjones2452]

In CFDs, FX when trading through a broker, it is usually the broker's profit for offering a market.

[@davidjones2452]

I think I did! There's a price to buy at and a price to sell at. I am sure I mentioned that more than once.

[@RotorWorks]

I agree, I didn't get it either. Where does the spread go, WHY is it there other than "the cost of doing business" which you mentioned plenty of times, but who makes the money there? Is the spread a commission for the cost of running the platforms and providing these online computer trading services? Is the spread negotiable on large trades between say governments? Is it the same spread at all exchanges if the stock is treaded at multiple exchanges?

[@hawkeyes4768]

can you cover order books

[@EmilMillan]

Like if hes know what he Talking about🔥

[@PuttyTatProductions]

He know very much goodly what he talk about. he number 1 beau-coup talker

[@wadzanaimakaza]

Can a spread be negative

[@diadlo13]

Where is that money going? If george sells to me for 0.99 but i paid 1.01 where is that 0.02 going?

[@davidjones2452]

In CFDs, FX when trading through a broker, it is usually the broker's profit for offering a market.

[@az-lp9kv]

Thanks I was looking for this answer, then if we sell we don't have to pay spread or broker charge.

[@Nicklessization]

So you thought trading 212 is a charitable organisation? They get paid too... Hello!!!!

[@DRS200]

Can i buy actual cryptocurrency via trading 212 or am i jusr buying a “share” in a cryptocurrency? Ie if i bought 1 x bitcoin share via trading 212, am i buying an actual bitcoin that i can use or am i buying a share in bitcoin the company? Great informative and easy to follow videos btw 👍

[@Trading212]

Hi Darren, happy to know you're liking the videos. Cryptocurrencies on the platform are traded as CFD instruments. This means that you're speculating with their price, rather than purchasing actual units of that instrument. In case you'd like to ask anything else, please don't hesitate to contact our support, where we'll be happy to assist you 24/7.

[@paulpena5040]

Not sure I understand. if xyz stock is trading for 500 and the bid / ask spread is like 499/ 501 which means you must pay 501 to purchase. Well who are you purchasing from?? Didn't they just accept $501? Why can't you turn around and sell it for $501. You can't claim no one will pay that amount, you just did.

[@davidjones2452]

Ok, but if we look at a traditional market making model, you as the retail trader (if you want to trade now) will usually have to pay the 501 in the 499/501 quote. Of course, if you were trading using, for example, Direct Market Access/Level 2, you could in effect become the market maker yourself. But, in my experience, this only applies to a very small percentage of retail traders/investors.

[@ANGELRUIZALONSO]

Which program or web page you using for the graphs?

[@Trading212]

Hi Angel, the trading app used in all videos in this channel is Trading 212. Trade with virtual funds in the Practice Money Mode of the trading account at www.trading212.com/en/Free-FOREX-Practice-Account-GBP.

[@pamdor3]

How can I use trading 212 it’s very hard

[@pamdor3]

When I buy my shares then I see it go to profit i then proceed to sell it on your platform it loses money when I sell it click the sell button the one next to the buy so I don’t know anything

[@Trading212]

You can contact the customer care team for assistance in regards to Trading 212's services - www.trading212.com/en/Contact.

[@dreamspacepresident3356]

T212 is very easy to use, almost like a game (not saying it's easy to make money). I think you're making two mistakes here: 1) You're overlooking the fact that if your instrument is a *stock*, then you have to pay commission. €2 for opening the position, €2 for closing the position. So if you're €3 in profit (Nice green number on screen.) and close the position, you still lose cash on the trade. 2) You said that you "sell" when the shares you bought gave you some profit. Instead, you should say that you close the position, which does indeed sell your (virtual) shares. But if you indeed *meant* "sell", then you possibly just opened a second position of those stocks, this time betting on it to fall instead of rise, while your old in-profit position stayed open.

[@ryan382]

Could it be though of the bigger the spread the bigger the risk? And this was what was happening with the crypto markets forcing people out dude to large spread.

[@davidjones2452]

I think that's a fair point - you often see this in smaller, highly speculative shares - a wider spread.

[@ididnotopenthischannel]

Please provide 2FA authentication

[@MrMudit14]

Why do you have the same chart on three screens in the background? And why are they even there ? You obviously won't use them while recording!

[@godfreypoon5148]

It sets the mood. Some people appreciate like that.

[@j.m7555]

Bid is sell ask is buy?

[@Trading212]

Yes, the Bid price refers to the Sell price on Trading 212 and the Ask price refers to the Buy price.

[@genacrocodile5634]

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