In this article are about the function of bid and ask spread, it all about stock and investments in a

particular company offering. In simple words, what are trending today is Crypto Currencies. I
relate to it because I used to have exactly the same what I’m doing because I sell and buy SLP
(Smooth Love Potion) this is a token where you can earn playing Axie and sell it to the market
for bid amount, also you can buy at asking price. So, before we going further what I learn about
is Bid and Ask so Bid means a buyer ask for specific amount for shares or tokens in market. Like
Jollibee shares amount of 100 pesos each. So, a buyer wants to buy the shares at 99.5 pesos per
share. So, if a seller is willing to sell at that price, then a bidder gets the shares. So that how bid
simple is. For Asking is for the sellers mostly if a seller wants to earn a profit basically would
ask for higher price for a stock of a company or a token for the market.
Now in the article A stock's price also influences the bid-ask spread. If the price is low, the bid-
ask spread will tend to be larger. The reason for this is linked to the idea of liquidity. Most low-
priced securities are either new or small in size. Trading options on the S&P 500 is a popular
way to make money on the index. There are several ways traders use this index, but two of the
most popular are to trade options on SPX or SPY. One key difference between the two is that
SPX options are based on the index, while SPY options are based on an exchange-traded fund
(ETF) that tracks the index. And they are different to one another in dividend None to SPX and
only for SPY in Trading Style There are two different trading styles, European and American.
European style options can only be exercised on the expiration date, while American options can
be exercised any time before the expiry date. SPY options are American-style and may be
exercised at any time after the trader buys them (before they expire) and for expiration SPX
options that expire on the third Friday stop trading the day before the third Friday (the third
Thursday). On the third Friday, the settlement price is determined by the opening prices of each
of the index's stocks. This price is the closing price for the expiration cycle. SPY options cease
trading at the close of business on expiration Friday. For Settlement SPY options are settled in
shares. When you exercise your options, you'll buy (or sell) shares of the EFT. Cash is used to
settle SPX options, so if you exercise and are in the money, you'll receive cash in your brokerage
account.
The two key differences between SPY vs. SPX options are that they are either American or
European style, and SPY options are on an ETF while SPX options are on the prices of the index
itself. You should understand the difference this makes for exercising your options. Additionally,
the difference in value makes how much capital you have to buy the options important.
If you have more capital to spare and don't require dividends, SPX might be a good choice. On
the other hand, SPY might be a better choice if you're a bit short on funds and can use the
dividends.