Order types
Bid and Ask
The bid is the best price someone will buy at; the ask is the best price someone will sell at.
The bid is the best price someone will buy at; the ask is the best price someone will sell at.
On any market there are always two prices showing at once. The bid is what buyers are willing to pay. The ask (also called the offer) is what sellers are demanding. The ask is always slightly higher than the bid.
When you place a market order to buy, you pay the ask; when you sell at market, you receive the bid. Understanding these two prices avoids surprises about the price you actually get.
A stock shows bid $49.98 / ask $50.02. If you buy at market, you pay $50.02. If you sell right back at market, you receive $49.98.
Understanding a term is good. Applying it on a real platform with a clear method is better. That is exactly what we do in 5 days.