Learn about Bid Prices and Ask Prices

What is Bid Price and then Ask Price?

David Marotta: The bid price is the price at which the market maker is always willing to buy a stocks, the ask price is the price at which the market makers always willing to sells stocks. The difference between the bid and ask price is called the spread. Spread used to be about an 8th of a dollar now that end up being pennies has the market have gone digital and become more efficient. And the market maker make a certain amount of money just off the bid in ask price because as there is a volume that’s going on there are always making a little bit no matter whether the stocks price is moving up or down. And then they move it up or down base upon more people wanting to buy, the move to stock price up. More people wanting to sell they move stock price down. And they move to stock price up until it’s so highly price other people want to sell and they move the stock price down until it is so low price other people want to buy it. And that’s the way they keep there pull sort of even is by moving the stock price up or down.


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