Bid-offer price: Difference between revisions
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imported>Doug Williamson (Link with new Mid rate page.) |
imported>Doug Williamson (Change link to Mid market price page, previously new 'Mid rate' page.) |
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* [[Bid-offer spread]] | * [[Bid-offer spread]] | ||
* [[Market maker]] | * [[Market maker]] | ||
* [[Mid | * [[Mid market price]] | ||
* [[Two way price]] | * [[Two way price]] | ||
Revision as of 19:14, 21 March 2015
Bid offer prices (or bid-ask prices) are quoted by market makers simultaneously as the prices at which they will deal with the market either to buy or to sell.
Spread means the difference between the bid price and the offer price. The greater the spread, the greater the market maker’s compensation for their work and risk in making the two way price; and the greater the all-in transaction cost for the price taker.
