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What is "bids at x.xxx"

  • Post #1
  • Quote
  • First Post: Dec 5, 2013 7:39am Dec 5, 2013 7:39am
Hy @ all

I struggle with that statement: "Market talk of bids in GBPUSD at 1.6350"

Are there sell/short or buy/long orders at that level? If "bids" are sell/short orders, what would buy/long orders be? "offers"?? or "asks" ??

Confused greetings from Hamburg/Germany,
Dietmar
  • Post #2
  • Quote
  • Edited 4:34pm Dec 5, 2013 8:25am | Edited 4:34pm
It means there are sell orders at 1.6350.

When you buy, you get the ask price, and when you sell, you get the bid price.

The difference between the two is the spread

EDIT: Please disregard, apparently I was wrong...
Thank you
Quoting Frostbyte
It means there are sell orders at 1.6350

Don't think that's correct, bids mean there are buy orders.

For market talk, read unsubstantiated or totally made up.
Quoting -nate-dogg-
{quote} Don't think that's correct, bids mean there are buy orders. For market talk, read unsubstantiated or totally made up.

Technically speaking, I'd believe you both to be correct.

From a level 2 standpoint, and especially if market price is above this level, it would indicate that the price at bid would be referring to a Demand or Supported area. This is where a large group of buyers would be waiting to buy if price dropped, to.

Where as if the price was below and orders were sitting at the "Ask", it would indicate the opposite, a Supply zone or Market Resistance.
Money Can't Buy Happiness. Poverty Can't Buy SHIT! You Choose!
"Bids" means there is buy interst at this level - and "offers" means there is sell interest..
..
Definition of 'Bid'

1. An offer made by an investor, a trader or a dealer to buy a security. The bid will stipulate both the price at which the buyer is willing to purchase the security and the quantity to be purchased.

2. The price at which a market maker is willing to buy a security. The market maker will also display an ask price, or the amount and price at which it is willing to sell.
http://www.investopedia.com/sites/de...g/icon_inv.png
Investopedia explains 'Bid'

This is the opposite of the ask, which stipulates the price a seller is willing to accept for a security and the quantity of the security to be sold at that price.

1. An example of a bid in the market would be $23.53 x 1,000, which means that an investor is willing to purchase 1,000 shares at the price of $23.53. If a seller in the market is willing to sell that amount for that price, then the transaction is completed.

2. Market makers are vital to the efficiency and liquidity of the marketplace. By quoting both bid and ask prices on the market, they always allow investors to buy or sell a security if they need to.
AVT INVENIAM VIAM AVT FACIAM
Quoting Magix
Technically speaking...
Not 100% sure i understood your explanation.

But a bid is a price you are willing to buy at, where as an ask is a price you are willing to sell at. That was always my understanding, however I'm willing to stand corrected.
Quoting dl4hao
Hy @ all I struggle with that statement: "Market talk of bids in GBPUSD at 1.6350" Are there sell/short or buy/long orders at that level? If "bids" are sell/short orders, what would buy/long orders be? "offers"?? or "asks" ?? Confused greetings from Hamburg/Germany, Dietmar
"Market talk of bids in GBPUSD at 1.6350"

if market shows bid/ask price 1.6350 - 1.6355, then as a trader you can sell at 1.6350 or buy at 1.6355, right?

"market buys GBPUSD at 1.6350 when traders want to sell at that level"
Quoting -nate-dogg-
{quote} Not 100% sure i understood your explanation. But a bid is a price you are willing to buy at, where as an ask is a price you are willing to sell at. That was always my understanding, however I'm willing to stand corrected.
I wasn't correcting you, I was actually agreeing with you.

Level 2 is a look at the prices and is more common terminology in the Stock Market than applied to Forex.

It is just a wordy more eloquent way of saying there are sellers waiting at, or there are buyers waiting at, in areas of supply and demand going off of the size of orders that are sitting at any particular price.

Having a look at Level 2 quotes in the stockmarkets is a valuable asset and can be as important in intraday trading as the actual technical analysis.

Watching these levels as per the FOREX, from a shorter time frame aspect, is completely worthless, these numbers get absorbed rather rapidly in a market where 4 trillion is moved daily. On the actual daily standpoint...I've honestly never come across a source that would allow any great depth on these. Given that on the standard pairs, ATR can be in the 100+ pip movement range, depth as high as I have seen is only 10 bids and 10 asks on either side of current market rate.

Bottom line, Nate...

It too is just all bullshit.

Money Can't Buy Happiness. Poverty Can't Buy SHIT! You Choose!
Cool, not got involved in equities yet, although it's on the horizon, prob only for value investing rather than day trading.

Quoting Magix
{quote} It too is just all bullshit.
Exactly, learn to read the signals for yourselves, don't rely on these two-bit websites talking bollox to get a few clicks.
Quoting -nate-dogg-
Exactly, learn to read the signals for yourselves, don't rely on these two-bit websites talking bollox to get a few clicks.
I think Dietmar was asking to help him sort through the bullshit.

Even just being able to recognize something as thus, is better than being a mushroom.

But, agreed...
Money Can't Buy Happiness. Poverty Can't Buy SHIT! You Choose!
Quoting Magix
{quote} Technically speaking, I'd believe you both to be correct. From a level 2 standpoint, and especially if market price is above this level, it would indicate that the price at bid would be referring to a Demand or Supported area. This is where a large group of buyers would be waiting to buy if price dropped, to. Where as if the price was below and orders were sitting at the "Ask", it would indicate the opposite, a Supply zone or Market Resistance.
ah, that makes sense for me ... so I have to say, at that time (when this announcement was given in a live news ticker) the market price was above ...

And as the task of any broker is to "match" all bids and asks, the price will move down to that region and after that, rise. (probably *g*)

Thats the reason why I asked... "bids at x.xxx" are there more sell or more buy orders waiting ...

Thanks,
Dietmar
Quoting dl4hao
{quote} ah, that makes sense for me ... so I have to say, at that time (when this announcement was given in a live news ticker) the market price was above ... And as the task of any broker is to "match" all bids and asks, the price will move down to that region and after that, rise. (probably *g*) Thats the reason why I asked... "bids at x.xxx" are there more sell or more buy orders waiting ... Thanks, Dietmar
Money Can't Buy Happiness. Poverty Can't Buy SHIT! You Choose!
How is there even a discussion about something which can only be black and white?

A bid is always a buy order for a certain amount and price at or below the market. Never above. See screenshot - all orders from 90 on down are bids, and all orders 91 and up are offers. Talk of large bids at x price simply means large buy orders at x price. Simple as that.

http://i.imgur.com/0rQO059.png
Quoting eurotrash
How is there even a discussion about something which can only be black and white? A bid is always a buy order for a certain amount and price at or below the market. Never above. See screenshot - all orders from 90 on down are bids, and all orders 91 and up are offers. Talk of large bids at x price simply means large buy orders at x price. Simple as that. {image}
I think it's confusing because with forex you're buying and selling at the same time.

http://www.babypips.com/forexpedia/Bid_price

http://www.babypips.com/forexpedia/Offer
Bids are buy limits.

Sorry but if you've been studying trading for more than a month and don't know abt bids/asks & which order types supply/demand liquidity, stop and learn market microstructure.
Quoting Frostbyte
{quote} I think it's confusing because with forex you're buying and selling at the same time.
You always buy & sell when a 'trade' is executed in a market.
  • Post #19
  • Quote
  • Last Post: Dec 5, 2013 3:42pm Dec 5, 2013 3:42pm
Quoting EmeraldEyes
Bids are buy limits. Sorry but if you've been studying trading for more than a month and don't know abt bids/asks & which order types supply/demand liquidity, stop and learn market microstructure.
Learning the terminology, if English isn't your first language can be a little confusing.

Quoting dl4hao
I struggle with that statement: "Market talk of bids in GBPUSD at 1.6350" Are there sell/short or buy/long orders at that level? Confused greetings from Hamburg/Germany, Dietmar
In this, he is asking about a press release of "Market talk of bids".

I don't think there is a person in FF that doesn't have a good sense of what bids and asks really are, just maybe just not as applied through the wording in a piece of information relayed through a media source.

Really, how many ways could you say the same thing?

Bids At
Demand
Support
Bid Side Support......................

Getting past this, how integral is the terminology when it comes to actually trading based on a technical analysis?
Money Can't Buy Happiness. Poverty Can't Buy SHIT! You Choose!
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