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 ?
Dr Mohammad Rafique demanded that support price mechanism should be kicked off at-least for the two years in the country.
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.
He was reacting to questions on why the party was not giving a clear view on the issue of price mechanism for petroleum products.
However, the party remained non-committal on whether the administered price mechanism policy needs a re-look.
He said after a 40 year relationship the sector was "dismayed to see an imposition of a price mechanism without being negotiated or properly thought out.
The government has revised the administrative price mechanism of natural gas from Rs 3200 to Rs 6,118.
Summary: DUBAI - Etisalat has revamped the price mechanism for international roaming by dividing the worldwide destinations into three zones: namely Gulf countries, other Arab countries and rest of the world.
But the report says Chancellor Alistair Darling made things worse by scrapping a scheme called the Overseas Price Mechanism, which protected the civil service by investing when sterling was strong.
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.