Why is the buy price higher than the sell price?

A: The difference in the two prices you’re referring to is the “spread,” and it represents the commission that is paid to the broker who executes your trade. In theory, buyers and sellers could be matched electronically.

What is the bid price in stock market?

The term “bid” refers to the highest price a buyer will pay to buy a specified number of shares of a stock at any given time. The term ask refers to the lowest price at which a seller will sell the stock. The bid price will almost always be lower than the ask or “offer,” price.

What if I sell delivery shares on same day Groww?

If you have bought stocks on BSE today then you cannot sell it on NSE the same day on Groww. You can do so the next day onwards. Trade to trade stocks bought today cannot be sold on the same day. You can sell it only after it has been delivered to your Demat account after T+2 days.

What is square off in delivery trading?

Definition: Squaring off is a trading style used by investors/traders mostly in day trading, in which a trader buys or sells a particular quantity of an asset (mostly stocks) and later in the day reverses the transaction, in the hope of earning a profit (price difference net of broker charges and tax).

Can you sell stock for more than market price?

You can sell shares a higher price than the market price using Company’s Buyback offer. Generally, all the companies set Buyback Price above the Market value of the shares.

How is bid price calculated?

To calculate the bid-ask spread percentage, simply take the bid-ask spread and divide it by the sale price. For instance, a $100 stock with a spread of a penny will have a spread percentage of $0.01 / $100 = 0.01\%, while a $10 stock with a spread of a dime will have a spread percentage of $0.10 / $10 = 1\%.

Who pays bid price?

buyer
The bid price refers to the highest price a buyer will pay for a security. The ask price refers to the lowest price a seller will accept for a security. The difference between these two prices is known as the spread; the smaller the spread, the greater the liquidity of the given security.

What is price limit in Groww?

Share: In a limit order, the investor has to specify a quantity and the desired price at which he or she wants to make the transaction. Say a share is currently trading at Rs 100 per share but the investor wants to buy it at Rs 95 per share. A limit order of say 10 shares at Rs 95 per share is placed.

Which is better intraday or delivery?

While intraday trading gives the opportunity for low capital accounts and margin payments, delivery trading requires complete amounts for its transactions. As an intraday trader, if one can judge and forecast the value of shares at short and small intervals, then intraday trading is a good idea.

What is the brokerage fee for selling shares in India?

In general, a full-service broker charges a brokerage between 0.03\% – 0.60\% of the transaction volume while trading in stocks. On the other hand, the discount brokers charge a flat fee (fixed rate of Rs 10 or Rs 20 per trade) on intraday.

How do you calculate the sale value of shares?

Sale value denotes value receivable or received on the sale of any capital asset. In case of shares, it is given by gross selling price of an asset, excluding Securities Transaction Tax (STT) and brokerage charges. For equity shares purchased before 1st February 2018, the cost of acquisition is calculated through the following steps –

How many companies in India have a share price below Rs 500?

Moreover, around 3500 companies listed on the Indian stock market have a share price of less than Rs 500 per share. However, there are a few stocks that trade at a price in the multiples of thousands of rupees.

When did Nisha Hegde sell her equity shares worth Rs 1 lakh?

Nisha Hegde bought equity shares worth Rs. 1 lakh in January 2013 and sold it in November 2013 after 10 months at Rs. 1.8 lakh. Let us calculate her short-term capital gains tax.

How is the cost of acquisition calculated for equity shares?

For equity shares purchased before 1st February 2018, the cost of acquisition is calculated through the following steps – Fair market value of an investment is calculated by multiplying the number of purchased shares with their highest price, as on 31st January 2018.