{"id":2973,"date":"2024-10-22T12:12:23","date_gmt":"2024-10-22T12:12:23","guid":{"rendered":"https:\/\/apex-aiexperts.com\/?p=2973"},"modified":"2024-10-22T12:12:23","modified_gmt":"2024-10-22T12:12:23","slug":"what-is-the-bid-and-ask-price","status":"publish","type":"post","link":"https:\/\/apex-aiexperts.com\/es\/what-is-the-bid-and-ask-price\/","title":{"rendered":"\u00bfCu\u00e1l es el precio de oferta y demanda?"},"content":{"rendered":"<p class=\"wp-block-paragraph\">On your crypto exchange\u2019s trading platform, when looking to trade a specific cryptocurrency like bitcoin (BTC), you will see a bunch of numbers known as the \u201c<strong>oferta<\/strong>\u201d y \u201c<strong>pregunte a<\/strong>\u201d prices.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">But what are these prices? And what do they mean?<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Understanding the&nbsp;<strong>mechanics of pricing<\/strong>&nbsp;is crucial to understanding how crypto exchanges work.<img fetchpriority=\"high\" decoding=\"async\" src=\"https:\/\/bpcdn.co\/images\/2022\/06\/23130315\/bid-and-ask-prices-347x360.png\" srcset=\"https:\/\/bpcdn.co\/images\/2022\/06\/23130315\/bid-and-ask-prices-347x360.png 347w, https:\/\/bpcdn.co\/images\/2022\/06\/23130315\/bid-and-ask-prices.png 530w\" alt=\"Bid and Ask Prices\" width=\"347\" height=\"360\"><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">In order to have any kind of market,&nbsp;<strong>transactions<\/strong>&nbsp;need to occur.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">And in order for transactions to occur, you need to have both&nbsp;<strong>compradores<\/strong>&nbsp;y&nbsp;<strong>vendedores<\/strong>.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">On a spot crypto exchange, a buyer is a person who wants to buy a cryptocurrency. And the seller is a person who owns a cryptocurrency and wants to&nbsp;<em>intercambiar<\/em>&nbsp;it either for fiat currency like U.S. dollars (USD ) or for another cryptocurrency like ether (ETH).<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The bid and ask prices are the prices at which other buyers are willing to buy and sellers are willing to sell.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Buyers bid<\/strong>&nbsp;y<strong>&nbsp;sellers ask<\/strong>&nbsp;(or&nbsp;<strong>offer<\/strong>).<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">When entering a buy order, your order needs to match with a seller. And when entering a sell order, your order needs to match with a buyer.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">So when you see a price quote:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>En\u00a0<em>oferta<\/em>\u00a0is the price at which you can\u00a0<strong>sell<\/strong><\/li>\n\n\n\n<li>En\u00a0<em>offer<\/em>\u00a0is the price at which you can\u00a0<strong>buy<\/strong><\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\">How Bid and Ask Prices Work<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">A buyer wants to buy at the lowest possible price, while a seller wants to sell at the highest possible price.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">So for a trade to happen, the person looking to buy and the person looking to sell have to&nbsp;<strong>agree on a specific price<\/strong>.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">A crypto exchange is structured to constantly find a price that both the buyer and seller will agree on.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">To come up with a price, a crypto exchange provides a trading platform where crypto traders can submit orders stating at what price and how many units they are willing to buy (AND sell) a specific cryptocurrency.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Said differently, a crypto trader looking to buy or sell a specific TRADING PAIR will state a specific PRICE and specific QUANTITY.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">These orders are then displayed and can be seen by&nbsp;<em>everyone<\/em>&nbsp;trading on the exchange.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">In the trading world:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>The word \u201cbid\u201d is the price someone is willing to buy,<\/li>\n\n\n\n<li>The word \u201cask\u201d is the price someone is willing to sell ((also sometimes referred to as an \u201coffer\u201d).<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">In normal circumstances,&nbsp;<strong>the bid price is lower than the ask price<\/strong>.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The slight price difference between these two prices is known as the \u201c<strong>bid-ask spread<\/strong>\u201d or usually just the \u201c<strong>difundir<\/strong>\u201c.<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>The highest price that someone is willing to buy a crypto at is known as the \u201c<strong>mejor oferta<\/strong>\u201c.<\/li>\n\n\n\n<li>This best bid price guarantees the highest possible price for any seller at that particular time.<\/li>\n\n\n\n<li>The lowest possible price that someone is willing to sell at is called the \u201c<strong>mejor pregunta<\/strong>\u201d o \u201c<strong>best offer\u201d.<\/strong><\/li>\n\n\n\n<li>This best ask price guarantees the lowest possible price for any buyer at that particular time.<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">This mechanism of \u201d best bid\u201d and \u201cbest ask\u201d is an effective way to keep the market&nbsp;<strong>fair<\/strong>. It\u2019s designed to give traders the&nbsp;<strong>best possible price available at that moment in time<\/strong>.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">How do Crypto Exchanges Use Bid and Ask Prices?<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Crypto exchanges match buyers and sellers together and automate the entire process.<\/p>\n\n\n\n<figure class=\"wp-block-image\"><img decoding=\"async\" src=\"https:\/\/bpcdn.co\/images\/2022\/05\/26190907\/crypto-order-types.png\" alt=\"Market and Limit Orders\" class=\"wp-image-224550\"\/><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">On their trading platform, after you\u2019ve selected a trading pair (a crypto\/fiat or crypto\/crypto pair), when you want to buy or sell, you\u2019ll be provided an order form where you can place the following&nbsp;<strong>order types<\/strong>:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Market<\/strong>\u00a0order<\/li>\n\n\n\n<li><strong>Limit<\/strong>\u00a0order<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">A&nbsp;<strong>market order<\/strong>&nbsp;will execute immediately at the current best available price<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>If you\u2019re buying, your trade will execute at the \u201cbest bid\u201d price.<\/li>\n\n\n\n<li>If you\u2019re selling, your trade will execute at the \u201cbest ask\u201d price.<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">A l<strong>imit order<\/strong>&nbsp;lets you set a specific price for the order to execute.<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>If you\u2019re buying, you can place a<strong>\u00a0buy limit order<\/strong>\u00a0and specify a \u201climit price\u201d, which is the maximum price you\u2019re willing to pay.<\/li>\n\n\n\n<li>If you\u2019re selling, you can place a<strong>\u00a0sell limit order<\/strong>\u00a0and specify a \u201climit price\u201d, which is the minimum price you\u2019re willing to accept.<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">Traders often use limit orders to have&nbsp;<strong>more control over execution prices<\/strong>.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">And it is the buy limit and sell limit orders that provide liquidity on a crypto exchange.<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>The buy limit orders are the BIDS.<\/li>\n\n\n\n<li>The sell limit orders are the ASKS.<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">The crypto exchange aggregates these bids and asks and with this data, sets the current best available price(\u201cmarket price\u201d) in real-time.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Below is a simplified account of how this works on most crypto exchanges.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">En&nbsp;<strong>green<\/strong>&nbsp;bars show the volume of bids (buy orders) and the&nbsp;<strong>red<\/strong>&nbsp;show the volume of asks (sell orders).<\/p>\n\n\n\n<figure class=\"wp-block-image\"><img decoding=\"async\" src=\"https:\/\/bpcdn.co\/images\/2022\/05\/22115820\/bid-and-ask-prices-crypto-exchange.png\" alt=\"Bid and Ask Prices at Crypto Exchanges\" class=\"wp-image-224288\"\/><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">Whenever a bid and ask price \u201c<strong>cross<\/strong>\u201d, this means that&nbsp;<strong>a seller will sell at a price that a buyer is willing to pay&nbsp;<\/strong>OR&nbsp;<strong>a buyer will buy at a price that a seller is willing to accept.<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">When this happens, the crypto exchange immediately matches and fills as much volume as it can for those orders.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">This ensures the&nbsp;<strong>buyers always buy at the lowest ask price<\/strong>, and the&nbsp;<strong>sellers sell at the highest bid price<\/strong>.<\/p>","protected":false},"excerpt":{"rendered":"<p>On your crypto exchange\u2019s trading platform, when looking to trade a specific cryptocurrency like bitcoin (BTC), you will see a bunch of numbers known as the \u201cbid\u201d and \u201cask\u201d prices. But what are these prices? And what do they mean? Understanding the&nbsp;mechanics of pricing&nbsp;is crucial to understanding how crypto exchanges work. In order to have [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[35,12],"tags":[],"class_list":["post-2973","post","type-post","status-publish","format-standard","hentry","category-beginners-guide-to-crypto-exchanges","category-learn-crypto"],"_links":{"self":[{"href":"https:\/\/apex-aiexperts.com\/es\/wp-json\/wp\/v2\/posts\/2973","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/apex-aiexperts.com\/es\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/apex-aiexperts.com\/es\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/apex-aiexperts.com\/es\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/apex-aiexperts.com\/es\/wp-json\/wp\/v2\/comments?post=2973"}],"version-history":[{"count":1,"href":"https:\/\/apex-aiexperts.com\/es\/wp-json\/wp\/v2\/posts\/2973\/revisions"}],"predecessor-version":[{"id":2974,"href":"https:\/\/apex-aiexperts.com\/es\/wp-json\/wp\/v2\/posts\/2973\/revisions\/2974"}],"wp:attachment":[{"href":"https:\/\/apex-aiexperts.com\/es\/wp-json\/wp\/v2\/media?parent=2973"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/apex-aiexperts.com\/es\/wp-json\/wp\/v2\/categories?post=2973"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/apex-aiexperts.com\/es\/wp-json\/wp\/v2\/tags?post=2973"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}