Trading Stock Online - Bid and Offer Prices
When trading stock online or via a phone broker, the difference in price between the bid and offer is the amount or ‘gap’ that makes up what the marketmaker sets so they can make money by selling stock to someone at one price and buying it at another. Marketmakers are looked at suspiciously by some people as they believe the prices are manipulated and that they are upto something, but on the whole the prices set are usually fair especially when there is >1 marketmaker and those prices are an accurate reflection of supply and demand in the market at that moment in time.
Last modified April 2, 2008Author 296 > has blogged 101 times
