Stock Market Ticker May
Make You Much Quicker
During
weekdays when you flip through any news channel you might see a
steady stream of letters and numbers flashing across the bottom
of the screen. Most of you know what this is. It is the stock
market ticker.
Every stock has a bid and an
ask. The bid is what a trader is willing to pay for that stock.
The ask is the price another trader is willing to take to part
with shares of that stock they own. When the two come together
a stock trade results.
The happy medium price which
occurs in a trade is called the last quote. This is the number
you see on your ticker next to the stock symbol you are
tracking. Sometimes that trade just happened. With other
tickers, it is relatively ancient history.
Not all tickers are made the
same. Some provide for what are called "realtime quotes". This
means the price on your ticker is very current. You have up to
the minute information allowing you to know the current quote,
bid and ask.
However, other tickers
provide for delayed quotes. Usually, the time delay is 20
minutes. In the world of stock trading, 20 minutes can be an
eternity. The stock might have moved significantly since that
old quote thus putting you in the predicament of formulating
your bid or ask in the dark.
As with most things, you get
what you pay for. Most all delayed quote tickers are free. Most
all realtime tickers require payment of some sort. Usually,
most all brokerages provide realtime tickers as a part of their
service. However, these are not free seeing you are paying for
it via a portion of your stock commissions.
Tickers can be quite
sophisticated displaying a wide array of data. The more
information at a trader's fingertips, the better their
prospects are. Many tickers allow for customization allowing
the user to create their own dashboard, some taking on the
appearance of a jet fighter cockpit display.
On Wall Street there is an
adage that goes "take lunch and be lunch". This stems from the
fact that removing your eyes from the ticker, even for a brief
period, can be costly. To ensure your success, keep a close
watch on that stock market ticker.
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