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Day Trading (Stocks)

D

DaVortex

Senior member
I would like to place an order right now for a stock.

The current price is 7.88
The bid price is 8.15
The ask price is 8.17

I want to place an order for the lowest amount. If I where to ask for an order at 8.05 that most likely wont go through correct?


Im a little confused about the bid/asking price.
 
correct.

the lowest price somebody is willing to sell at is 8.17.

if there wasn't already a bid that was 10 cent higher then your bid, there would be a chance that the ask price could drop to meet your bid price. but since somebody is willing to pay more, that probably won't happen.

 
I am a psychic 🙂 jk, let just say that I have been watching this stock for a long time, saw it went from 60 to around $1.29 then up to ~$29 then now to $7ish this week. anyway, the market is not even open yet, what you are seeing are the premarket bid/ask prices, which usually are meaningless. Stock usually open at the same price as yestersday's closing price. But in this case, there might be a lot of people new buyers that want to get in ASAP, so they might willing to pay the premarket prices, thus driving up the opening price.
 
Originally posted by: DaVortex
I would like to place an order right now for a stock.

The current price is 7.88
The bid price is 8.15
The ask price is 8.17

I want to place an order for the lowest amount. If I where to ask for an order at 8.05 that most likely wont go through correct?


Im a little confused about the bid/asking price.
Click to expand...

One thing you may want to do is check out the lot sizes. If the bid has only 100 for sale while the ask has 1000, chances are they may be willing to come down in price. If you have level 2 access, I would also take a look at the bids and asks behind the lead ones as to tell what the demand is like. If the bid is 8.15 for 100 shares and there isn't another bid in site untill 7.88, while the ask is 8.17 for 1000 shares and there are several lots behind it, chances are the MMs may be willing to come down.

Its a game you have to play with them.
 
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