ContentThe bid/ask spreadBinance Futures, Dynamic POC indicator, Last Bid/Ask trades in DOM panel and other goodiesIs the current stock price the last bid price or the last ask price, or what?Do you use a market order?Understanding Bid and Ask PricesLast Bid/Ask Trades in the DOM TraderWhat Is the Bid-Ask Spread?
However, a specific execution price or price range isn’t guaranteed—the resulting execution price may be above, at, or below the stop price itself. Therefore, traders should carefully consider when to employ a stop order. With single stocks, there is no way to create new shares. If someone wants to buy 10,000 shares of XYZ, they must find another investor who wants to sell. If no one wants to sell, they might have to pay a lot of money to get that trade done.
Clicking this link takes you outside the TD Ameritrade website to a web site controlled by third-party, a separate but affiliated company.When you cruise gas stations looking for a better price, you’re combing through the ask prices because you probably have a “bid” price in mind you want to pay.If no orders bridge the bid-ask spread, there will be no trades between brokers.The ask price, on the other hand, refers to the lowest price that the owners of that security are willing to sell it for.Sometimes it’s handy, but you should keep in mind that the order might end up stuck.But ETFs have a critical difference that dramatically alters the playing field for investors.
For example, if XYZ trades, on average, 10 million shares per day, it will be easier to trade than something that trades 100 shares per day. Note, however, that spreads could be tight on both, which could mislead unwitting investors to conclude that both securities are equally liquid.
The bid/ask spread
That will indicate which side the trade most likely occurred on. I say most likely because combo orders may stray from this but that’s not applicable to you since you’re asking about a penny stock. I tried to find the answer myself by comparing historic bid, ask, and last trade prices. But, I couldn’t find that and the answers to this question suggests that historic bid and ask prices are not freely available. The buyer paid the „ask“ price, and the seller received the „bid“ price. Be sure to understand all risks involved with each strategy, including commission costs, before attempting to place any trade.
Typically, the number of shares offered on the bid or the ask will be small—sometimes 100 shares, sometime more, but rarely a huge amount. If you try to buy 10,000 shares of something that only trades 100 shares per day, you could have trouble. Bid/ask spreads aren’t the only factor to consider when trading, whether you’re trading stocks or ETFs. You also have to look at volume and so-called market impact.
Binance Futures, Dynamic POC indicator, Last Bid/Ask trades in DOM panel and other goodies
In a publicly traded financial instrument transaction, the seller looks at what other sellers are asking for and where buyers are bidding and then decides what they should ask for. A buyer, on the other hand, looks at other buyer’s bids and seller’s offers and then decides where they will bid. Sticking with the car analogy, suppose you sell your car at auction. Well, it’s ultimately sold to the highest bidder, or at the “bid” price. But if you intended to buy a car, you may approach the owner and inquire, “How much are you asking?
If the order didn’t trigger at all, it happens when the price doesn’t reach the trigger level. When you use a conditional order, it doesn’t go to the exchange order book beforehand. We follow the price and places the order when the price reaches the trigger level. Above you can find an example of how the BID price is different from the LAST price on the rise.
Is the current stock price the last bid price or the last ask price, or what?
When you see $50 on the chart, the first BID order might still be at $47. Assume there is a BID order at $40, and someone buys everything up to $50 using one big market buy, but no one places a buy order higher than $40. Even though the price on the chart is $50, the BID price is last bid ask still at $40. Conditional order to sell coins uses BID price, and conditional order to buy coins uses ASK prices. The BID price is the price of the first buy order on the exchange’s order book. Understand why your trade didn’t take profit or didn’t open by conditional order.
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But, now I’m looking at a penny stock that has wild fluctuations and a huge bid ask spread. So, when I’m looking at the current and historic prices, I’m curious to know if those are the prices people paid or the prices people received, or what exactly they are. Options are not suitable for all investors as the special risks inherent to options trading may expose investors to potentially rapid and substantial losses. Options trading subject to TD Ameritrade review and approval.
Do you use a market order?
Sometimes it’s handy, but you should keep in mind that the order might end up stuck. https://www.bigshotrading.info/ The ASK price is the price of the first sell order on the exchange’s order book.
How much should I bid over the asking price? As with all negotiations, when you are making an offer on a house, start low. A good rule of thumb though is to offer 5% to 10% lower than the asking price. Don't forget that sellers often take this into account and deliberately put their house on the market for more than they expect or would accept.