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How markets work · CHAPTER 2 OF 7

~5 min read ·

Bid, ask and the spread

A chart shows you one price. In reality there are always two. The bid is the highest price someone is willing to buy at right now. The ask is the lowest price someone is willing to sell at right now. You buy at the ask and sell at the bid — never the other way round.

The gap between them is the spread, and it is the first cost of every trade. You pay it before the price moves at all.

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Underlined terms lead to their glossary entry — a definition, an explanation and what the term means in KVERX. More in the glossary →

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