Bid vs Ask Prices: How Buying and Selling Work ☝️

✅ Trade with our Sponsor Broker: Trade Nation www.financial-spread-betting.c...
✅ Check our website: www.financial-spread-betting.com/
✅ Please like, subscribe & comment if you enjoyed - it helps a lot!
What is Bid/Ask Spread - Explaining Bid Price, Ask Price, and Spread www.financial-spread-betting.c... PLEASE LIKE AND SHARE THIS VIDEO SO WE CAN DO MORE
Bid vs Ask: How Buying and Selling Work. In this video Mark explains the basics of bid and ask prices and the spread. This is a good video for beginners. What is the Bid? What is the Ask? What is the Bid and Ask Spread? Who determines the price of Bid and Ask prices? Suppose we want to make a trade immediately; the price that we can buy at and the price at which we can sell will be different.
$21.06 (BID) - $21.12 (ASK or Offer)
The difference between the BID and ASK prices is known as the spread.
Basics of the Bid, the Ask, and the Bid-Ask Spread in Stock Trading
If you want to buy this stock you have to buy at the ASK
If you want to sell this stock you have to sell at the BID
Bid and Ask prices are determined by buyers and sellers. For less liquid shares we have market makers.
Related Video
What is the Spread!? TRADING BASICS SERIES 👨‍🎓🏫
• What is the Spread!? H...
What is a Market Maker and How do They Make Money? ☝️
• What is a Market Maker...
Joining the Bid or Offer vs Hitting the Market ☝️
• Joining the Bid or Off...

[@ukspreadbetting]

👉 It seems a lot of our viewers are non-subscribers. Make sure to subscribe to our youtube channel as we upload regular videos! If you hit the “Bell” icon (🔔) you will receive a notification on youtube every time that we upload a video on our channel. Bell icon hitters are super fans of our channel 🥰

[@aaronhernandez8434]

Don't stop. Keep pushing. Until you can win. Because you can win

[@aarifarafi4712]

For people who got confused with the information on this video. A simple tip A bid is what people are offering to pay for that security at that moment; an ask is what sellers are demanding in order to sell it. A bid is always lower, an ask higher.

[@nickharrison1477]

tysm this comment helped a lot

[@twoforthemoney5912]

I'm a Beginner day trader , Great Video finally someone I can relate too.

[@ageloskolaitis7821]

Have seen many videos to undestand how price changes, but this is the only one that gives me the whole picture. Thank you!

[@StuffOffYouStuff]

THanks for confirming that the price you pay as the buyer is the price listed as the Ask or the Offer at the start. But this whole thing always gets me confused because later on you go into what other sites have as their explanation, you end up in an infinite logic loop, because also you're saying that the institutional buyer comes in and says "i'm willing to buy stock for $21.10", that changes the Bid price to $21.10. But we've already said earlier that as a buyer it's the Offer price you pay. When I put a limit order in for $21.10, which is the price I'm personally WILLING to buy at, it won't kick in until the OFFER/ASK price reaches $21.10 on my trading platform. You see how this whole thing is so damn confusing?

[@divyaakashdutta4038]

Thank you for this. Awesome explanation!

[@raynoldncube2242]

My Best teacher.... Thank you sir for this quality knowledge...

[@MatthewCarlsen]

Thank you for the awesome information! I now understand the concept as I’m getting into trading! Although my channel isn’t directly connected, I do find trading stocks fun!

[@_N0_0ne]

You’re so great at explaining. Thank you kindly🧸

[@saravanapradeep5597]

If a lot of buyers keep buying from the "ask" que, then a 'buy up' occurs. Inversely if a lot of sellers keep dumping into the "bid" que then a 'sell down' occurs. This changes the price action

[@honestly101]

Great to listen to this at 2x.

[@keithdmello]

great explanation. Thank you!

[@vinayakb5739]

Thank you so much, helped alot.

[@luvdpuk2]

Still a bit confused here. For example: yesterday I wanted to sell an ETF which I have been waiting over a year to get back to even. My avg was 44.50 and the ETF was at 44.52 yesterday morning. I figured if it kept going up, then great and in case it didn't I set a tight stop loss at 44.49. My fidelity account would not accept the trade and an error message said I was "on the wrong side of the market." So after some research and a phone call to fidelity, I realized the bid/ask spread was 44.52 - 44.21. that meant I needed to set my stop loss lower than the bid price. Needless to say I was disappointed but learned a valuable lesson. Never again will I ignore the bid ask spread prior to purchasing a stock of ETF. On a side note, the market price of my ETF dropped today and triggered my stop loss. I had a minor loss of around .5% but was happy to get out. I was down as much as 20% last year before averaging down.

[@biswajitbhattacharyya9217]

Good video! Thanks

[@specialreserve4394]

don't stress gents, it on 41 now .. all good

[@zharyasin159]

My question is why would i buy at a higher price then sell at a lower price? I doesn't make sense. I'm confuse.

[@johnk1639]

Ok cool, easy to understand 😀

[@bilalnajib381]

can a small position size limit order have the same effect as a large order? in terms of changing the bid/ask

[@tomrobertson6747]

I'm confused about the bid - ask spread. I've heard that it is the market maker's profit and that it is just the natural way the market works. I was recently watching a market and there were far more buyers and sellers at the bid and ask prices than there was trading. The bid was approximately 358.05, the ask was approximately 358.1, there were approximately 1000 buyers and sellers at the bid and ask prices, and 100 shares were sold. At what price were those shares sold? Did a market maker buy them at 358.05 and sell them at 358.1? Did all the buyers and sellers at the bid and ask prices make limit orders, so that the only way a transaction could be made is for someone to make a market order or a limit order at the bid or ask price, which would mean that a seller would sell at 358.05 and a buyer would buy at 358.1? My question boils down to wondering if, in effect, a limit order doesn't pay the bid - ask spread but a market order does.

[@captaincam7161]

So if you wish to buy a stock its preferred to do a buy ask? or is is buy bid?

[@johnwilson6271]

If you buy the stock on the ask and it pops up .10c real fast and theres a .10c difference between the bid and ask.Would it be better to just sell it on a MARKET order?

[@WoolleyWoolf]

Great video, very important information.

[@AJ-wp3pw]

Why is the price sometimes not halfway between the bid and the ask? With $xop I have noticed that sometimes it's right at the ask and sometimes it's even higher than the ask. How does this happen and what does it mean?

[@arjay090893]

never traded before, but could i just trade by undercutting the bid and ask prices , e.g. bid 21.08 ask 21.12 so i would submit a bid 21.09 and if and when my bid clears i would then ask 21.11.... like could i just hunt larger spreads all day and trade within those margins

[@ManchesterDrMike]

Hi sir I'm new to investment and trade. Quite confused about bid and ask. If bid does not equal ask, how could trade occur? Put it simple, if a milk is priced at 1 pound, you have to pay 1 pound to make the trade occur.

[@rjf7023]

So limit orders determine the bid and ask price? and if you dont buy it with a limit order, rather you are buying at market, then you're essentially paying the lowest ask price available?

[@hammads9045]

So I should buy shares at the Ask price? If I put the buying price at something lower than the Ask then that's no good, right?

[@xybersurfer]

i like that you threw in market makers. but, maybe you could have just explained what the order book is and how it is used to fill orders. people might misinterpret and think that institutions some kind of special control over the price, which isn't the case

[@specialreserve4394]

I'm on a loss at the moment ----my money - 57 ZRA -- its gone !!! bring it back

[@JaiC81]

This is great, thank you so much for taking the time to make this. Very silly question - a buyer can buy at the 'ask' price - if you wanted to 'sell' naked call/put - you can do that anywhere in between? and second - when larger orders are filled at the 'bid/mid' - can one infer that those are 'sell' orders? Thank you!! =)

[@baggins2860]

So when you are buying a stock at the ask price who is getting the money?, can it be any ordinary investor who just so happens to be selling there stock and if that's the case then the investor is actually selling at the ask price? See this is what I'm confused about because he says you sell at the bid price, and is there ever an instance where you sell for the ask price because limit orders exist when it comes to these types of stocks and isn't it basically an auction so there is a chance someone will buy your stock if you sell it at the ask.

[@lifeunderthebuspodcast4559]

Where exactly can you find the bid and ask price for stocks? i dont see this info on charts. where can you direct me to?

[@SilvaSilva-eb2ie]

Thank you ¡

[@deecharles8282]

Nice, beginner here

[@neilmartin99]

What about people who just want to buy long term and buy at market? How is that factored into the bid/ask? Also why is a company like Pfizer priced around 38 a share and Chipotle over 800? Why the discrepancy?

[@FlyingUberTuber]

What are you saying is a to wide spread when scalping?

[@Tropicsca]

so bid vs ask stocks are basically stocks you are willing to take a loss on? is it even possible to make that much on them?

[@WoolleyWoolf]

Baby started crying at 4:53, hence the video edit ;)

[@MichaelJosephJr934]

I rarely look at bid and ask. I set my buy price lower than where I anticipate resistance and wait and it usually always executes.

[@dandanndannnnnn]

Hi Do you have a video on how to scan your charts first thing in the morning before you begin to day trade? E.g what to look for and the other things you would take into consideration

[@ukspreadbetting]

Not that I know, forwarded to Mark as a suggestion.

[@dandanndannnnnn]

@@ukspreadbetting That would help. Thanks

[@pwsoultrainn4090]

I can understand the numbers and how the spread comes about. but who is paying for the 2 cent difference. Sorry there is something missing in the explaination for me to fully understand .. If i pay a dollar and someone else pays 98 cents then who pays the 2 cents to the market makers.

[@anoopbains1257]

what is the mathematical formula to figure the change in bid or ask price

[@aswhinrevankar9203]

Thanks Mark Sir.

[@andia968]

how to show historical ask price in MT4? Thx

[@souvikghosh5087]

Can you tell where Stop Loss has been put for any particular stock by majority of the masses ?

[@elimajesty51]

Still confused , who's making profit here? Is it the BID or the ASK

[@specialreserve4394]

no

[@icontrolthespice]

Whos here after robinhood closed GME sells

[@UnluckyFatGuy]

Investment terminology is terrible...

[@dhareenee18]

Sir, you speak too fast, i'd to open the video setting and reduce the playback speed! Still, your voice isn't clear enough, it looks like it is echoing and there is no pause. Even when i reduced the speed to 0.75, still i have problem to cope with your unclear accent.