Bid Ask

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yickwong

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This may sound like a dumb question, but is the bid(ask) price the buy(sell) price from the dealer's perspective or the from the investor perspective?
 
The dealer is concerned with the bid-ask spread---basically it's money. The larger the spread (less liquidity), the more the dealer can make.
 
My text book says when you buy you pay ask , when you sell you get the bid
I hope this sentec is helpful to you.

thanks
 
you'll never forget this if you pass thru a few international airports and exchange your currency for foreign cash , especially when you keep steadily losing money at the exchange counters - thanks to the spread business
 
Oh man, I wish I could get those spreads that they get at airports. It's like 1.15/1.45....
 
JoeyDVivre Wrote:
-------------------------------------------------------
> Oh man, I wish I could get those spreads that they
> get at airports. It's like 1.15/1.45....


I assuming this is EUR..right?
 
It's really confusing... I don't know about where you live, but here in New Zealand, they use the indirect quote for all exchange rates, so the bid price for currency is the price you buy at, so I guess it's the inverse of the direct ask price.
Even so, the book is making it confusing, it said that if there are excess limit buy orders (bids) close to the current market price then there is a tendency for higher prices, so thats what got me confused... can anyone reconcile this for me?
 
whether direct or indirect, the more expensive price is usually the ask and the lower price is the bid. The dealer buys it from you at the bid (the lower price) and sells it to you at the ask (the higher price). The dealer buys low and sells high.
 
sorry for piggybacking on this thread, but I got a quick question for yickwong.

How's the charter faring in NZ these days? Is it a prerequisite for a lot of PM, and equity research jobs?

I'm trying to gauge the added value of a CFA charter over there and any insight you might be willing to offer would be greatly appreciated.

thanks in advance.
 
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