Ask and Bid are terms commonly used in the financial market, especially in transactions involving the buying and selling of assets such as stocks, currency pairs, commodities, and bonds.
The term Bid refers to the maximum price a buyer is willing to pay for a given asset. It is the best price at which buyers are willing to purchase a specific quantity of that asset in the market. For example, when placing a buy limit order, investors set the maximum price they are willing to pay.
On the other hand, Ask refers to the minimum price at which a seller is willing to sell an asset. It is the best price at which sellers are willing to sell a specific quantity of that asset in the market. When placing a sell order, investors establish the minimum price at which they are willing to sell.
In summary, Ask refers to the best available selling price, while Bid refers to the best available buying price for a given asset.
In order to visualize the Bid & Ask lines on the BlackArrow chart, right-click on one of the candles and go to Bid/Ask Prices:
The difference between the Ask and Bid price is known as Spread, which represents the trading cost through which brokers profit from transactions.
It is important to note that Ask and Bid prices fluctuate constantly due to market supply and demand, economic and political factors, and other events that may affect asset values. Therefore, keeping track of real-time quotes is essential when trading in the financial market.
BlackArrow also offers the ability to quickly buy and sell at these prices using the Chart Trading, Fast Trading, and Scalping Ticket tools.
The Bid and Ask buttons allow traders to either place limit orders or execute market orders.
To add the Bid and Ask buttons to your BlackArrow, go to Settings through the Tools menu and click on Sidebar in the Chart Trading tab.
In Buy Ask, the purchase is made at the best available selling price. In a Sell Bid, the sale is executed at the best available buying price. These orders are considered agressions because they consume the offers that are available on the market.
In Buy Bid, the purchase is placed at the best available buy price. In Sell Ask, the sale is placed at the best available sell price. In this case, these are limit orders, meaning they are placed in the order book and will be executed only when an offer from the counterpart is sent at the same price or better.
Note: The Ask & Bid lines won't be plotted while the market is closed.
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