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 ?
The implementation of the new closing price mechanism comes after the completion of the last primary update of the current trading software known as Xstream OMX, which will expedite the execution of orders.
However, he noted that there is no change in price mechanism for residential users.
However, the party remained non-committal on whether the administered price mechanism policy needs a re-look.
Iranian officials last week told Crescent they would look for rival markets if talks on a price mechanism for the sale failed.
paper and board industry's ability to survive in the face of international competition and the consequences for recovered paper trading; the new business potential in emerging markets such as India, Turkey, Indonesia, Vietnam and the Ukraine; and the global price mechanism with the major factors influencing recovered paper price developments.
Betfair spokesman Jack Houghton said: "It's hard to see how punters would accept a new starting price mechanism which didn't embrace the whole market.
Known reserves of oil, natural gas, and coal have been expanding, and accessible stocks of aluminum, zinc, iron, and copper have grown as technology develops more-conservative production techniques and the price mechanism encourages exploration and new discoveries of underground reserves.
The company argues that the price mechanism which mobile carriers use to set prices for fixed-line-to-mobile calls breaks the antitrust law because it blocks fair price competition and forces callers to pay higher prices.
Mistretta, chairman and chief executive officer of Marine Harvest International, welcomed the establishment of a reference price and hopes that action will taken by the EC under the reference price mechanism if prices continue at their present levels.
OPIS is unique in providing a price mechanism for new ETS-ready supply contracts, such as World Fuels Services' Carbon Neutral Jet Fuel.
Since there is no price mechanism, traders, selling fodder at cattle markets and roadside places, are doing a roaring business.
Sources said the ministry prepared a summary to shift the weekly oil price mechanism to a monthly one following the unanimous adoption of a resolution by the National Assembly to switch to the old oil pricing mechanism.