Bid and ask

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Bid-Ask Spread

On an exchange, the difference between the highest price a buyer of a security or other asset is willing to pay and the lowest price a seller is willing to offer. Generally speaking, the more liquid an asset is, the lower the bid-ask spread is. As a result, currency, which is considered the most liquid asset, has an extremely low bid-ask spread.

Bid and ask.

Bid and ask is better known as a quotation or quote.

Bid is the price a market maker or broker offers to pay for a security, and ask is the price at which a market maker or dealer offers to sell. The difference between the two prices is called the spread.

References in periodicals archive ?
In addition , the Price Management Department actively co-ordinates closely with ministries and branches in developing and promulgating legal documents to convert methods from fee to service price mechanism according to regulations.
'We are focusing on to build better price mechanism with much improved tobacco yield by capacity building of farmers through imparting training' he further added.
Therefore, according to the CPC Floating Oil Price Mechanism, it is expected that from midnight on the Monday, May 14, the retail price of each type of gasoline and diesel fuel in the country will increase by NT$0.50 per liter.
The most favored option of the Coal Ministry was the "pooled price mechanism" under which CIL would import coal, blend it with domestic coal and supply to thermal power plants at an averaged price, the official said.
It served as the foundation for the price theory revolution and also served as a basic introduction to the ideas of supply, demand and distribution as well as an analysis of the price mechanism in market organization.
"We have discussed how we could increase our imports to 20 billion cubic meters and the price mechanism needed for that," Yildiz said.
The Egyptian Stock Exchange (EGX) will implement a new closing price mechanism on Thursday.
Elaborating on the new price mechanism, he said that if a consumer uses electricity during peak hours (say between 1 pm and 5 pm), the tariff will be more and vice-versa.
"Market-based pricing mechanism may include an auction, or any other market-based price mechanism," he added.
Asked if the party would want the government to revisit the controversial administered price mechanism policy or decontrol prices, Tewari said: " Inflation is an issue of concern.
Though speaking disapprovingly of the increase in petrol prices by Rs5 in a month, the party remained non-committal on whether the policy of administered price mechanism needs a re-look.