Well, there's something called the SPREAD
Before we light up candles 🕯️🕯️🕯️ and manifest for this price to tank even further, let's quickly discuss the difference between the two prices - Selling At (BID) & Buying At (ASK)
Smallanyana Friday 🧵
Well, there's something called the SPREAD
The spread is a key indicator of the liquidity of the asset.
In general, the smaller the spread, the better the liquidity..
1.Volume - this is a method of reporting the quantity of a stock that is traded daily. Stocks that have a higher trading volume will often have narrower bid-offer spreads...
During periods of high volatility, when prices change rapidly, the spread is usually much wider...
From the SPREAD definition above this then means that if @F_2chainz wishes to buy this stock he would need to offer aleast R110 in order to purchase it at today’s price....
What does this mean then?