Bid and ask prices in plain language

Understand why one instrument can show two prices and what the gap means.

Design preview with synthetic narration and an original educational script. Not a published episode or trading advice.

Transcript

This is an educational audio preview. Many markets display a price at which someone can sell and a price at which someone can buy at the same moment. The gap is called the bid-ask spread. It is part of transaction cost and can vary by instrument, market conditions, liquidity, and provider. When comparing two quotes, check that you are comparing the same kind of price in the same currency. Commissions and other fees can also affect total cost. This explains a basic term; it does not report a live quote or suggest buying an instrument.