Explain the difference between a bid price

Explain the difference between a bid price and an asked price and also explain why the prices are different.



honeyd


14-09-20 | 07:28:59

The bid price is considered to be the highest price that a buyer will pay for a security where the asked price is considered to be the lowest price a seller would accept for security. The difference between the bid price and the asked price is the spread, when the spread is small, there will be greater liquidity of the given security.

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