facebookWhat is the difference between BID vs ASK volume? - Seedly

Advertisement

Anonymous

30 Nov 2020

General Investing

What is the difference between BID vs ASK volume?

Bid VS ask volume, what's the difference?

Discussion (4)

What are your thoughts?

Learn how to style your text

Higher Bid vol are ppl trying to buy. Strong demand. Price goes up . opposite us also true. The higher Ask means ppl are trying to sell/dump the stock. Price will go down.

Bid Price - highest price that buyers are willing to pay for

Ask Price - lowest price that sellers are willing to sell at

Bid volume refers to transactions that happen at the bid price

Ask volume refers to transactions that happen at the ask price

Generally, bid price will always be lower than ask price since a transaction occurs when bid = ask.

Hence when bid volume is higher than ask volume, there are more transactions occurring at the bid price, which means that the price is likely to move downwards (cheaper).

Vice versa for ask volume - when ask volume is higher than bid volume, there are more transactions occurring at the ask price, which means that the price is likely to move upwards (more expensive).

Kenneth Lou

30 Nov 2020

Co-founder at Seedly

There are two situations you would need to be aware of:

  • When the bid volume is higher than th...

Write your thoughts

Advertisement