Bid / Ask Price

hagadol

Active member
140 0
What controls the Bid and Ask (Purchase and Selling) price difference and how do the move (in relation to each other) as the price of the stock moves ?
 

TWI

Senior member
2,536 254
Buyers and sellers control bid/ask
More buyers bid moves up ask withdraws
More sellers ask moves down bid withdraws
Always be a spread as many rather pay a tick below offer or sell a tick above bid. Market makers profit from this.
In illiquid market bid/ask gets wide as at times nobody is keen to trade.
 
 
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