Wick

Bid, ask & the spread

Market Basics

Two prices, always

The bid is the highest price buyers will pay; the ask is the lowest sellers will take. The gap between them is the spread, a cost you pay on every round trip.

Check yourself

Bid $10.00, ask $10.06. You market-buy then instantly market-sell. Result?

  1. Break even
  2. Lose ~$0.06/share correct
  3. Gain ~$0.06/share

You buy at the ask and sell at the bid. The spread is a silent fee. Tighter is better.

Learn this properly

This term has a full interactive lesson in Wick — the chart, the pattern to tap, and a live practice terminal to try it on. Free to start.

Open the lesson

Related terms