JoymistaWhat Are the Bid and Ask Prices?
The bid is the price you can sell at right now, the ask is the price you can buy at, and the gap between them is the spread.
Explained
The ask is always above the bid. A buy opens at the ask and closes at the bid; a sell opens at the bid and closes at the ask. Many charts draw only the bid, which is why a sell’s stop can be hit when the spread widens even though the chart never shows price reaching it.
Example
Example with made-up numbersGold’s bid is 2000.00 and its ask 2000.30. Buy and close at once and you sell at 2000.00, losing 0.30 per ounce.
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Open in JoymistaEducational content, not investment advice.