Bid ask stock market

USA TODAY financial markets reporter Matt Krantz answers a new question every weekday at money. If you've ever traded in a car at car dealership, you understand the difference between the "bid" and "ask" price of a stock. The bid is the price the dealer is willing to pay to buy from you, be it your used car or a stock you're selling.

That's the "bid" price. That's the ask price. The "spread" is the difference between the two: The same goes for stocks. If you're looking to sell a stock, a broker will offer to buy it for one price, the bid.

The Basics Of The Bid-Ask Spread

And if you're looking to buy it, the broker will offer to sell it to you for another, higher ask price. The spread is the broker's profit.

Luckily for everyone, other than brokers, the difference between bid and ask prices has gotten quite small. The more frequently program for earnings binary options stock trades, the closer the bid and ask get.

In other words, the spread gets smaller. You can see the bid and ask prices on any stock at money. Put the stock's name or ticker symbol in the Quick Quote box. Here's a link to the page with GE's information.

The difference between the bid price and ask price is the broker's profit - qyzofolawory.web.fc2.com

Which should you pay when you're buying? That's the price the broker will charge you. When you're selling, you will get the bid price. Matt Krantz is a financial markets reporter at USA TODAY.

He answers a different reader question every weekday in bid ask stock market Ask Matt column at money. To submit a question, e-mail Matt at mkrantz usatoday.

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