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Created on 27.03.2019

Put it simply, please! Ask price and bid price

Joel Schmid, deputy Branch Manager at the PostFinance branch in Berne, explains the difference between the ask price and bid price in securities trading in 45 seconds.

When you listen to Joel explain, it doesn’t sound so difficult any more. You can take another look at the detailed answer here at your leisure:

The ask price refers to the price at which the seller is prepared to sell their securities. So, if an investor owns 100 shares in company X and wants to sell them at a price of CHF 100 per share, CHF 100 is the ask price. In other words, the ask price indicates the price of an offer. The bid price, on the other hand, is the price a buyer is prepared to pay to purchase securities. It therefore indicates the price at which demand actually exists on the market. The bid price is usually lower than the ask price – after all, the seller wants to make money and the buyer wants to pay as little as possible. The difference between these two prices is called the “bid-ask spread” or spread. 

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