What is the difference between Ask and Bid? - ProProfs Discuss
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What is the difference between Ask and Bid?

Asked by B. Wright, Last updated: Feb 14, 2020

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H. Barnes

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H. Barnes, Unemployed, Barnes, Atlanta

Answered Aug 22, 2019

The real definition of both 'bid' and 'ask' in this context will be quite different from the usual meaning you have known them for. The terms are used mostly in the stock market. During stock exchange, bid is what will be used by buyer to get the ask price from the seller, while ask is what a seller will used to determine the bid price from the buyer. In other words, a bid price is the total budget a buyer is ready to release for the security being exchanged, while an ask price is the amount the seller is willing to receive for the stock being sold.

The real definition of both 'bid' and 'ask' in this context will be quite different
The bid price can be divided into two levels, i.e level 1 and 2. For level 1 gives a level of information about bid price, while level gives a kind of comprehensive information about the highest and lowest price a buyer can afford. Another difference is that, bid price by the buyers usually comes very low, while the sellers will make ask price very high.

 

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