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Is it possible to have a bid tick that goes down and an ask tick that goes up at the same time? That's to say a down tick for bid and up tick for ask at the same time or when a bid tick is up so will the ask tick and vice-versa

Yaro Da Kya
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  • B/A spreads can remain constant, widen, or narrow. For the spread to widen, either the bid must drop, the ask must increase, and both can occur as well. – Bob Baerker May 19 '18 at 11:44

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Yes, what would prevent that?

Suppose for a particular asset there's a bunch of people willing to buy at $10 and a bunch of other people (or even the same ones) willing to sell at $20.

Then there's Alice, willing to buy one lot at $14, and Bob, willing to sell one lot at $16.

The bid-ask spread is therefore $14-$16.

Bob decides he really doesn't have time or courage to wait any longer for someone who will pay him $16, and lowers his ask to $14. The exchange matches his order up with Alice's and both orders disappear.

The spread is now $10-$20.

hmakholm left over Monica
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