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Reading the BID vs ASK Tutorial (Market Size vs Market Depth)


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The auction market always displays the “best available price” at any given time (aka the BID and ASK). The BID is the highest price people are willing to pay. The ASK is the lowest price people are willing to sell at.  

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NBBO “National Best Bid and Offer” shows the highest (BID) and lowest offers (ASK) for a security among all exchanges and market makers. This data may not be sufficiently up to date, so investors may not get the prices they were anticipating upon trade execution, a concern for high-frequency traders  “Market size” indicates how many shares are available at the BID and ASK prices. “Market depth” (Also called level 2 quotes) indicates nb of shares are available at each and every price that is inferior to the BID and superior to the ASK.   #TechnicalAnalysis #BID #MarketStructure #Tutorial

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Pause FinanceBy ElBlanco