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How to understand the bid or ask concept?
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<p id="isPasted">The bid-ask concept is a fundamental concept in financial markets. It refers to the two prices at which a security can be bought and sold at any given time. The bid price is the highest price that a buyer is willing to pay for a security, while the ask price is the lowest price that a seller is willing to accept for a security.</p><p>The difference between the bid and ask price is known as the spread. The spread is the cost of trading a security, and it is typically higher for less liquid securities.</p><p>Example:</p><p>Suppose the current bid-ask …</p>
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<p id="isPasted">The bid price is the highest price a buyer is willing to pay for an asset, while the ask price (or offer price) is the lowest price a seller will accept. Understanding these concepts is essential for trading in financial markets like stocks, currencies, and commodities. </p><p><strong>How They Work</strong></p><ul><li>When you buy an asset using a market order, you pay the ask price.</li><li>When you sell an asset using a market order, you receive the bid price. </li><li>Trades occur when a buyer's bid matches a seller's ask, or when one party agrees to the other's price. </li></ul><p><strong>Key Insights</strong></p><ul><li>Bid-Ask Spread: …</li></ul>
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