What is the spread of the offer?

The offer of offer is a equation used for trading in financial markets. It represents the difference between what investors are willing to pay for stocks and the price for which sellers are willing to destroy the same security. The range of bids is the difference between purchasing and sales prices and affects the price at which stocks are traded and the types of revenues that investors generate.

The application application process is similar to the auction settings. The price of tenders reflects the latest price at which the buyer is willing to buy shares. The bid price, also referred to as the ASK price, reflects the latest value for which the sellers are willing to interpret shares. The difference between the two prices is the Buy-Sell range. This amount is maintained as a carried fee by a trader or a market specialist that facilitates a business order as a reward for increasing trading on financial markets.

For example, if one larbbrow company GE 'and' is on the market to buy 100 sharesShares x for $ 10 USD (USD) per share, this amount is the offer price. If another large company “B” tries to sell shares X for $ 10.25 per share, this amount reflects the bid price. The difference in these prices is $ 0.25 per share, and this is the amount of the range of the offer.

The way it is applied to the stock market includes third -party investor. The investor who is trying to purchase the X -shared shares for $ 10.25 from a business company B. If this investor is trying to sell shares, he can do so for $ 10 USD for the company and if he decides.

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range of offer is based on offer and demand in stocks. The more offers exist for specific security, the greater the demand, and this results in a higher stock price. If there are more tenders than offers, the supply will outweigh the demand in a particular one, and this leads a price of lower security.

on the electronic market like usDAQ in the United States are buyers and retailers on the stock market using computers. This reduces administrative costs, although market specialists are still involved in shops. These experts will offer and offer prices on computer and buyers and sellers are electronically harmonized.

on the stock exchange where live market specialists, including the New York Stock Exchange (NYSE) and London Stock Exchange (LSE), a live trader is responsible for the corresponding buyer and sellers. The offer range is then determined in a corresponding manner. There is also an element of electronic trading in NYSE and LSE, in addition to live trading.