Definition
Bid Quantity / Ask Quantity
Bid and ask quantities are the number of shares buyers want at each bid price and sellers offer at each ask price, shown in market depth.
In the market depth window, each bid and ask price has an associated quantity, the shares available at that level. Large bid quantities below the current price hint at buying support; large ask quantities above hint at selling resistance.
The balance of total bid versus ask quantity gives a quick sense of short-term pressure. But these numbers can be misleading, big players may place and pull large 'spoof' orders, so quantity should be read alongside actual traded volume and price action.
Related terms
- Order BookThe order book is the real-time list of all outstanding buy and sell orders for a stock, organised by price.
- Market DepthMarket depth shows the quantity of buy and sell orders waiting at each price level, indicating how much volume the market can absorb.
- Bid-Ask SpreadThe bid-ask spread is the difference between the highest price a buyer will pay (bid) and the lowest price a seller will accept (ask), representing a core implicit cost of trading and a measure of liquidity.
Plain-English explainer from The Dispatch Investors Encyclopedia. General information, not financial advice.