I currently have an account with choictrade.com and also have acess to live quotes.
I was wonderring if someone could fill me in regarding the BID and the ASK. Is the ASK the amount you can buy the stock at and the BID the amount you can sell it at?
I have done some research on this but I'm sure when it comes to penny stocks the rules change slightly.
Lastly what does it mean when the BID and the ASK are N/A (Not available).
Thank you for your time.
Posts: 71 | Registered: Apr 2005
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-------------------- You never really grow up you just learn how to act in public. Posts: 1169 | From: Pollock Pines Ca | Registered: Feb 2004
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quote:Originally posted by poorman: Your right on most counts there. I pay a lot of atention to them. If the bid is moving up close to the ask it most likly meens the ask is going up and the price is moving up. Stay away from ones where the spread is large as that means you for sure will sustain a loss trying to get out. As for ones where you can't see the B/A I stay away from the. I hate being blind. Good Luck Trading
-------------------- You never really grow up you just learn how to act in public. Posts: 1169 | From: Pollock Pines Ca | Registered: Feb 2004
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posted
Some brokers (E*Trade for example) don't show the bid/ask for some of the OTC/Pinks. I am not sure why but I think it is because their system cannot handle more precision than two decimal places.
Like WFTV (.002 x. 0021) does not show in E*Trade.
I know that Scottrade does not have this problem.
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Like poorman says, it is important to note the spread when considering a stock. A large spread can be very risky especially if the stock is not moving.
Also note that you do not have to buy at the ask. You can put and order in for whatever price you like (limit order). Often you can get in at a price below the ask (at or near the bid) if you are patient (and the stock is not running).
Posts: 852 | From: Pacific Northwest | Registered: Jan 2005
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posted
the Ponderosa, j/k. a gap between the bid and ask, eg, last sale .0022; new bid .0017 new ask .0025; a device to slow down a run (it's easier for new buyers to buy into a tight spread: last sale .0022, bid .0021, ask .0023.)