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Pls say whether im on the right track bid price is the maximum price the dealer may pay for a share and ask is the minimum price the dealer is ready to sell and is it true as a retailers cant buy or sell @ Bid/ask price so let's say RIL bid is 99.8 and ask is 100 If I place an order I can only buy it at 100?at ask price ? So that means im always buying shares from dealers not from other retailers?pls explain how it works And finally what's the role of market price here how is it different from bid/ask prices
Answers (4)
Yes Bid is rate at which you ( retailer) will sell and ask is the rate at which retailer will buy. People on the other side can be a dealer or another retailer if you are looking at an electronic exchange with order matching. However if you are looking at dealer driven markets then what you said about other side always being the dealer holds good. Market price is usually the last price at which a transaction took place - What is buy for one is sell for other
Sriram Somayajula Admin
Yes Bid is rate at which you ( retailer) will sell and ask is the rate at which retailer will buy. People on the other side can be a dealer or another retailer if you are looking at an electronic exchange with order matching. However if you are looking at dealer driven markets then what you said about other side always being the dealer holds good. Market price is usually the last price at which a transaction took place - What is buy for one is sell for other
Sir India is it electronic or dealer driven market and forex is mostly dealer market right?
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