トレンドワード
よくある質問
Bid and Ask Prices: Frequently Asked Questions
What is the difference between bid and ask prices?
The bid price is the highest price a buyer is willing to pay for a stock, while the ask price is the lowest price a seller is willing to accept. The difference between these two prices is called the bid-ask spread.
How does the bid-ask spread affect my trades?
The bid-ask spread represents an immediate cost when trading. A wider spread means higher costs, as you buy at the higher ask price and sell at the lower bid price. Narrow spreads indicate more liquid markets.
Who determines the bid and ask prices?
Market makers and liquidity providers set bid and ask prices based on supply and demand. They profit from the spread while ensuring market liquidity by always being ready to buy or sell securities.