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{{g}}The “[[bid price]]” is the price at which you would buy something (think, in an auction, of making a bid), whereas the “[[offer price]]” or | {{g}}The “[[bid price]]” is the price at which you would buy something (think, in an auction, of making a bid), whereas the “[[offer price]]” or “[[ask price]]” is the price at which you would sell it. Think of offering to sell your house, or offering something at auction. | ||
Usually a punter like you or me in the market is doing one thing at any time: buying or selling. But there are many market participants — [[market maker]]s, [[dealer]]s, [[broker]]s, [[broker/dealer]]s and so on — who make it their business to be buying and selling the same thing— say, a particular [[bond]], [[stock]] or [[currency]] — at the same time. | Usually a punter like you or me in the market is doing one thing at any time: buying or selling. But there are many market participants — [[market maker]]s, [[dealer]]s, [[broker]]s, [[broker/dealer]]s and so on — who make it their business to be buying and selling the same thing— say, a particular [[bond]], [[stock]] or [[currency]] — at the same time. |