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  1. Default I have a question about bid/ask and their function.

    Bid = You buy at this price
    Ask = You sell at this price

    This is fairly simple but I noticed certain low priced stocks have too wide of a spread. Something like 3.00/3.01 is actually too wide for somebody that is trying to day trade it. Right off the bat, you're losing about .33% of a trade going from 3.00/3.01 even if the price has not been moved....

  2. Default

    I think your math is off....$.01 is the spread, right? You're talking about .33% not 33%. Maybe I'm confused.

  3. Default

    LoL, sorry about the backward mistake, Didn't even noticed it until you told me.

  4. Default

    Also I did say .33%. Where did I put 33%.

  5. Default

    Yes you have it backwards. Or consider this, which is more accurate:

    Bid = What other traders are willing to buy from you.
    Ask = What other traders are willing to sell to you.

    With low price stocks... depends on the broker. Some may let you enter fractional price. (I think TDAmeritrader, for example, would let you. I might be wrong.) If so, the current bid/ask being 3.00/3.01, you may try to buy at 3.005, or 3.007. This would be helpful for stocks under $1.00 or trading at pennies.



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