New to trading

[Damper132]

Hi everyone I’m a first time poster and brand new to trading. I have a question re the attached, how come the price between the buy and sell is so great, others I’ve looked at there is just a few pence but this one is a 10% difference?
Also while I’m on with it is there anything I should be reading or listening to that will held me understand the stock markets etc?
Thanks in advance

 

[fibo_trader]

Hi everyone I’m a first time poster and brand new to trading. I have a question re the attached, how come the price between the buy and sell is so great, others I’ve looked at there is just a few pence but this one is a 10% difference?
Also while I’m on with it is there anything I should be reading or listening to that will held me understand the stock markets etc?
Thanks in advanceView attachment 272642

Yes there is. Read all the posts by NVP. Then go to Central London and meet his tailor. That will complete Trading 101.

 

[tomorton]

Actually its more than a 10% difference.

However, the difference between the two prices is the spread. The higher price is the ask price, the price you pay to obtain the share or a long position on this market (or closing a short position): the lower price is the bid price, the price you receive when selling the share or closing a long position (or opening a short position). If you like, its the difference between what the shopkeeper pays to get a loaf of bread onto his shelf and what he charges you when you walk in and buy it. The difference is his profit.

The spread varies between different brokers. It also varies between different markets - the spread on a huge firm will be much tighter than on a very small company. The spread also tends to widen at times of market open and close and prior to and following news announcements concerning that market, unusual general market volatility etc.

See Investopedia.

 

[Damper132]

Actually its more than a 10% difference.

However, the difference between the two prices is the spread. The higher price is the ask price, the price you pay to obtain the share or a long position on this market (or closing a short position): the lower price is the bid price, the price you receive when selling the share or closing a long position (or opening a short position). If you like, its the difference between what the shopkeeper pays to get a loaf of bread onto his shelf and what he charges you when you walk in and buy it. The difference is his profit.

The spread varies between different brokers. It also varies between different markets - the spread on a huge firm will be much tighter than on a very small company. The spread also tends to widen at times of market open and close and prior to and following news announcements concerning that market, unusual general market volatility etc.

See Investopedia.

wow thanks alot for the insight guess i have alot to learn

 

[fibo_trader]

wow thanks alot for the insight guess i have alot to learn

Understated El Mariachi, you not only have a lot more to learn in terms of what Tom (Johnny Ringo) nicely explained - there is gobs of pain, anguish, shots to the stomach, getting close to homelessness, looking with loving eyes toward the YMCA when you're lying in a gutter dying of hunger. Your wife might leave you, you might lose the kids, your spine might crack and your voice will contain no bass frequencies below 200 Hz.

that's what you have in store for you.

Quit now and find another job. In this profession only the tigers survive and even they have a bitch of a time during formative years.