Quotes Flashcards
Quote
usually two-sided consisting of a bid and and ask or offer. Most provide size, usually in round lots (units of 100 shares)
Bid
The highest price someone is currently willing to pay for the security. Size is number of shares that someone is willing to buy at the bid. The bid price is the price the seller receives
Ask
Or Offer. The lowest price someone is willing to sell the security for. Size is the number of shares that someone is willing to sell at the ask. The ask price is the price a buyer pays.
Quote
[symbol] bid [bid price] ask [ask price] size 10 x [size]
Quotes for listed stocks
DMM’s order book are all the open limit orders for the assigned stock. Highest buy limit is the most that someone will pay for the stock and establishes the bid. The size of the limit order establishes the size.
The lowest sell limit is the least someone will sell their stock at and establishes the ask. The size of the limit order establishes the size.
Quote
The bid and size is based on the highest open buy limit. The ask and size is based on the lowest sell limits.
Spread
Difference between the bid and ask prices. Market maker is buying at the bid and selling at the ask. That is how they make money.
Ask
Customers buy at the ask
Bid
Customers sell at the bid
Bid/ask relationship
Bid is always lower than the ask price.
Bid for BD
Price the broker-dealer buys at
Ask for BD
Price the broker dealer sells ask
Bid for Customer
Price the customer sells at
Ask for Customer
Price the customer buys at
Inside bid
Highest bid
