What does BxA mean on the real time quotes chart?

Question

What does BxA mean on the real time quotes chart?

Answer 1

it's bid-ask spread.  so say you own a stock and you want to sell it.  the market price is $35, bu the bid ask spread is ten cents.  if you sell you stock, you will receive $34.95 per share.   if you buy it, you will pay $35.05.

the bid-ask spread is basically the market maker's cost of holding inventory.  he/she makes a market in a certain stock, and by holding it in his inventory, he is taking on risk.  what if the stock tanks while he's holding it?  likewise, the stock can go up.   all this risk is factored into the market maker's commission, which is the bidask spread.

the more liquid the stock, the lower a bidask spread it will have.  a thinly traded stock will have a high bid ask spread.

Answer 2

Bid & Ask