If you are ready to try some stock exchange buying and selling online you can expect to encounter lots of specialized terminology which will almost certainly confuse you to begin with.
Consequently we want to reveal exactly what these terms mean. The most important things that you would like to know are what the ask price is and what the bid price is.
Whenever you are doing any offline or online stock market trading you will be working at plenty of buying in addition to a lot of selling. It is a really different approach as opposed to previous way where you simply bought a few stocks in a business then hoped that the business would improve and that the price of the stocks and shares would rise in worth in general over a significant period of time. If you are trading you will be doing exactly the same thing but on a more regular basis.
Some people can decide that they basically would like to be in a trade for only a few hours or even just a matter of minutes.
So the ask price is the one you ought to look at if you want to purchase additional stocks to build up your collection of investments.
This is often named the offer price.
The bid price is therefore the one to see if you want to sell some. It really helped me to think about it as being something like a normal public sale. The auctioneer is offering goods to be sold.
He'll usually begin by asking whether anybody will give $100 for it. So if I wish to get it, this is the price which I want to know.
A person at the sale could say "I bid fifty dollars". That's the price that the auctioneer has to know because he's the one selling. In the auction the final bid price and offer price are identical. I mean that the auctioneer sells for $200 which is precisely what the buyer will pay. There may be then normally a sum taken off just before the money is handed over to the person who has sold the item.
This amount is the fee for the auction business. It works somewhat differently in stock exchange dealing. The prices that you see on your computer display screen will already allow for that fee. So for a common illustration, the bid price might be $10.00 a share while the ask price may be ten dollars 50.
Effectively this means that if I purchase one hundred shares now it would require me to pay $1050. Were I to sell them back straight away, I would sell them for $1000.
I would drop fifty dollars on the transaction and that is equivalent to the charge for the auctioneer. I am just going to complicate this a little bit by mentioning that, as opposed to the previous investing by way of a stock broker, you can actually sell some shares before buying them.
The online market place has changed the face of investing and that is probably the most important area.
What you're saying is that the cost of the stocks and shares is about to fall. You sell a few stocks in the organization to then buy them back if the cost falls. You will appreciate that it is possible to create money with a falling share price as well as a rising one. Nevertheless, you will need to completely understand the trading terminology of bid, offer and ask.
Consequently we want to reveal exactly what these terms mean. The most important things that you would like to know are what the ask price is and what the bid price is.
Whenever you are doing any offline or online stock market trading you will be working at plenty of buying in addition to a lot of selling. It is a really different approach as opposed to previous way where you simply bought a few stocks in a business then hoped that the business would improve and that the price of the stocks and shares would rise in worth in general over a significant period of time. If you are trading you will be doing exactly the same thing but on a more regular basis.
Some people can decide that they basically would like to be in a trade for only a few hours or even just a matter of minutes.
So the ask price is the one you ought to look at if you want to purchase additional stocks to build up your collection of investments.
This is often named the offer price.
The bid price is therefore the one to see if you want to sell some. It really helped me to think about it as being something like a normal public sale. The auctioneer is offering goods to be sold.
He'll usually begin by asking whether anybody will give $100 for it. So if I wish to get it, this is the price which I want to know.
A person at the sale could say "I bid fifty dollars". That's the price that the auctioneer has to know because he's the one selling. In the auction the final bid price and offer price are identical. I mean that the auctioneer sells for $200 which is precisely what the buyer will pay. There may be then normally a sum taken off just before the money is handed over to the person who has sold the item.
This amount is the fee for the auction business. It works somewhat differently in stock exchange dealing. The prices that you see on your computer display screen will already allow for that fee. So for a common illustration, the bid price might be $10.00 a share while the ask price may be ten dollars 50.
Effectively this means that if I purchase one hundred shares now it would require me to pay $1050. Were I to sell them back straight away, I would sell them for $1000.
I would drop fifty dollars on the transaction and that is equivalent to the charge for the auctioneer. I am just going to complicate this a little bit by mentioning that, as opposed to the previous investing by way of a stock broker, you can actually sell some shares before buying them.
The online market place has changed the face of investing and that is probably the most important area.
What you're saying is that the cost of the stocks and shares is about to fall. You sell a few stocks in the organization to then buy them back if the cost falls. You will appreciate that it is possible to create money with a falling share price as well as a rising one. Nevertheless, you will need to completely understand the trading terminology of bid, offer and ask.
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