Basics of the Bid, the Ask, and the Bid-Ask Spread in Stock Trading

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  1. Thank you!! I have read multiple websites on this, and they all read like gobbledigook. This is the first clear, simple, straightforward explantion I've found. Subscribed!

  2. A stock that i've been looking to trade has a bid of 5.70 and a ask of 8.70 and is on the market for $143 per share. With that being said, is it safe to say if the stock increases from $143 per share toe $183 per share would the bid and ask move respectably?

  3. If i buy a stock at 20 cents a share and the next day its trading at 40 cents a share but, the current "Bid" is at 25 cents a share, am i going to get 40 cents a share or the "Bid" price of 25 cents a share when i sell it? Sorry if i'm not making sense since i am just starting to grasp the concept of buying and selling stocks.

  4. So essentially you profit when the bid price overtakes the ask price right? For example if I bought x number of shares at 50.98 (ask) and kept them for a while and the bid price climbs to say 51.50? Please help me in this regard.

  5. Why do they teach us in manuals that when you place a market order you get the stock at the current market price yet according to this video you are saying we would get the stock at the current ask price on a market order not the current market price that is confusing. If GOOG is setting at 150 market price 152 ask 148 bid and I place market order do I pay 150 or 152? Why is it called a market order and not an ask order then ?

  6. The one thing that I don't understand and am unsure about is if instead of placing a "market order" for a current $2/$3 bid-ask hypothetical stock, let's say I place a "limit" order in which I only want to sell my stock at $4. When the "ask" price finally gets to my $4, does that mean that I am actually going to receive the $4 for my stock, or is the price I will receive going to be whatever the "bid" price (let's say it's $3) is at the time that my $4 "ask" price is the current lowest "ask"? Because from what I've read and seem to understand about the bid/ask price is that there is always some sort of discrepancy between the bid/ask– the "spread"– so the "market makers" can make their little profit. I'm hoping you can help me sort this out, it would be greatly appreciated. Thanks a lot.

  7. Please help me understand this, anyones help would be appreciated, I know the answer is a very simple straightforward one I just can't find it. Heres an example:

    Bid is 20.87, ask is 20.88. Bid/ask size are both at 0. That's it. 

    I know the size means (ask size for instance) how many shares available at that price before changing at a higher rate if buying at market order, but what does 0 mean? Does it mean no shares are available for purchase? Does it mean as many stocks as you want are available at that price?

    Please answer, new to common stock trading and this threw me a curve ball. Cant find the info anywhere on what a "0" bid/ask size means.

  8. Hey Sasha. I'm trying to understand the bid and ask here, but I'm having issues grasping the concept.
    If the ask is what you would essentially pay for buying, why do you receive the bid (which is lower) when you sell?

    Also, why, when you get a quote, do you see the bid and ask, but pay something else for a stock?

    Thanks in advanced!

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