Finding truthful information about the market and its processes is extremely difficult. People are used to googling to find something useful and informative. And yes, if you search for "spread is", you still have a chance of getting an objective explanation of the term. But if you search for "market mechanics", you might be horrified. The first few lines of search results will be taken up by articles stating that "the main types of market mechanics are: trend, correction, reversal, level breakout and rebound...". By filling his head with such knowledge, a trader risks not only losing his common sense, but also his deposit. That is why we try to spread as much objective information about the market as possible.

>In our opinion, talking about the mechanics of the market in terms of "reversals and breakouts" is like talking about the mechanics of an internal combustion engine, but not about the processes that take place in it, such as fuel injection, combustion, movement of the pistons under the action of the gases produced, but simply saying "the car is going and it is turning left".

Trends, corrections, and reversals are a consequence of what has happened in the market. Or as Aires said in [the second level of course](https://resonanceholding.com/edu) - "the shadow of a friend".

The real mechanics of the market are:

●	how orders are matched
●	how buyers or sellers shift the market equilibrium and cause price movements
●	How liquidity flows from one hand to another, from one set of assets to another.

## [The basics first](#basics-first)

How does the process of buying or selling an asset on an exchange work?\
\
For example, you have $10.000 in your wallet and you decide to buy Bitcoin. How to buy it here and now? Quite simply! On the exchange terminal, there is a button labeled "Buy", you press it and in a fraction of a second, the number of Bitcoins you have enough money for appears in your wallet.

![how-market-works](https://resonanceholding.com/cdn-cgi/imagedelivery/jAjT7jptlF-zvdt3zw0WYA/how-market-works/public)

A seemingly unremarkable activity. You do it every day of your life and you don't even think about it: you buy a coffee from the coffee shop near work or groceries from the shop near your home. But then something goes wrong and your favorite drink isn't there. You're willing to pay a double price just to get that cup of coffee you want, but it's impossible because it's just not there.\
\
The same goes for buying Bitcoin. For you to be able to buy Bitcoin so easily, someone has to want to sell it. But that someone may not be as hasty as you, they may have an objective to sell the asset for more than the current price, so they put their lot in the order book. By the way, you could also buy Bitcoin cheaper.

## [BID ASK, what is it?](#bid-ask)

In many of the articles on this blog, you'll come across references to the most basic concepts, because you can't do without them. For example, there are two sides to the market – buyers and sellers. They can manifest themselves in two ways:
1.	Actively
2.	Passively. 

Being active means that you press the "Buy" or "Sell" buttons on the trading terminal and make an immediate trade, in other words, you trade the market.\
\
A passive manifestation is a pending trade when your lot is placed in the order book. This is where we come across the BID, ASK, Spread terms.\
\
There are two types of orders in the market: to sell and to buy, i.e. Bids vs Asks. Let's go into detail. Defining Asks, these are sell orders, placed at the top of the order book and marked in red. The definition of BID is – buy orders placed at the bottom of the book, they are green.

![bid-ask-explanation](https://resonanceholding.com/cdn-cgi/imagedelivery/jAjT7jptlF-zvdt3zw0WYA/bid-ask-explanation/public)
 
## [What is a Spread?](#spread)

What are spreads in trading and why should you know about them? There is a separate type of trading – trading spread, but this is a more complicated subject and we will talk about it in future articles. For now, we will just cover the basic terms.

>The Spread exchange is the difference in bid ask price between two different similar commodities traded on open markets.

Put simply, Spread is the difference between the “best” buy price (Bid) and the “best” sell price (Ask). We put the word "best" in quotes because it is the best price at any given time, but in reality it is just the closest price to the market.

The Spread can be narrow when the difference between the BID and ASK prices is minimal. As the difference between them increases, the Spread widens. Correspondingly, the Spread is wide when the difference between the Ask and Bid price is significant. Such a difference exists because buyers want to buy the asset as cheaply as possible and sell it at a higher price. On the Resonance platform, the Spread can be seen in [the Depth Density](https://resonanceholding.com/rtt) tool.

## [Conclusions](#conclusions)

If you urgently need to sell a Bitcoin and press the "Sell" button, the exchange's mechanisms will match it with the next bid on the BID side. And vice versa. If you urgently need to buy it, your dollars will go to the order book and look for a better bid on the ASK side.\
\
It is a common situation where you have already bought what you want and have decided to sell at a higher price, but you do not have much time to sit in front of your computer waiting for the price to improve. In this case, you enter the Ask, i.e. you place your sell order in the order book on the ASK side and humbly wait for someone to want to buy from you. 

>These are the simple, straightforward, and true market mechanisms: buys are executed against sell orders and sales are executed against buy orders.

These basic principles of pricing have left their mark on history. And it is on the basis of these processes that the trader continues to study what is happening in the market, to analyze, to gather all the arguments, and to profit from them.

Finding truthful information about the market and the processes taking place in it is extremely difficult. Therefore, we try to distribute as much objective information as possible about mechanics, and fundamentals. In this article, we are talking about what Ask, Bid, and Spread are.

What are BID, ASK and SPREAD in trading?

You can go to the platform or read something interesting

Name

Account | Resonance

Authorization | Resonance

Author's articles and fresh news for traders and investors about trading in financial markets. Features and training in trading. Tips from trusted authors and analysis of trading situations.

Trading blog | Resonance

Articles that reveal the possibilities of trading tools on the Resonance platform. Learn more about search engines for intraday trading, as well as a medium and long-term investment. Learn to analyze the market objectively and take your trading to the next level.

Learn everything about trading in our expert articles. We cover all aspects of trading, from basic mechanics to advanced techniques. The blog will be a great addition to the training course and the posts feed.

Articles about trading: everything you need to know about trading | Resonance

Resonance cluster chart. Analyze supply and demand volumes

Resonance chart

The Cookie Policy governs your visit to the Resonance website and explains how we collect, protect and disclose information obtained from your usage of our platform.

Cookies Policy | Resonance

A tool to analyze price volatility, aggregated delta by volume, best coins for grid bots, most active coins in the market, liquid ticker comparison, standard deviation of price and volume, cost of price movement, heat map by limit orders, market capitalization, and Bitcoin dominance. As well as back-tests of coins for grid algorithms.

Dashboard | Resonance

The trader's dictionary will help you understand the slang that is used in training traders, as well as for analyzing the financial market. The dictionary contains all the terms that will help you better adapt in the field of trading.

Trader's dictionary | Resonance

Online course about trading and financial markets for beginners and experienced traders. Interactive lessons. Learn more about trader's psychology

Online education trading | Resonance

My course | Resonance

Answers to the most popular questions about the financial market, trading, arbitrage, assets, anomalies, technical analysis, futures and other questions and answers about the financial market.

Questions and answers about the financial market | Resonance

Posts by trusted authors and professional traders about financial market analysis, trading, training and other trading secrets

Posts feed | Resonance

Market Delta is a tool for analyzing the flow of capital between index groups. Groups include bitcoin, stablecoins, alcoins, fiat currencies and more.

Market Delta | Resonance

Market Stat is a tool for analyzing the flow of capital between index groups. Groups include bitcoin, stablecoins, altcoins, fiat currencies and more.

Market Stat | Resonance

Page not found | Resonance

Learn objective market analysis with experienced mentors. By passing the course with one of Resonance's trusted authors, you can dive even deeper into the learning material.

Mentorship | Resonance

Paid features from Resonance open up additional opportunities for analyzing financial markets. Choose a plan that suits your trading strategy and analyze objective market information.

Plans | Resonance

Resonance privacy policy governs your visit to the website and explains how we collect, protect and disclose information obtained from your usage of our platform.

Privacy Policy | Resonance

Analysis of supply and demand volumes using a cluster chart. You will get access to aggregated data on 10,000 trading pairs from 15 largest exchanges

RТТ Chart | Resonance

A tool for finding anomalies on assets. Speeds up the search for profitable assets by up to 16 times. Pump finder. Allows you to sort assets by bitcoin price changes, market trading volumes, market capitalization.

Screener | Resonance

Cluster chart, interactive education and a community of professional traders on the web service for traders and investors – Resonance.

Resonance | Analysis of financial markets

The Resonance Terms of Service set out on this page govern any and all usage of our website by you.

Terms of Service| Resonance

Hello!

Hey there, trader!

Choose the language you want us to communicate with you.
You can change it in your account settings

Payment instructions

Leave your contact information so that the mentor can contact you. After filling out the form, click "Pay" again

Leave your contact information so that the mentor can contact you.

We will contact you within 24 hours after receiving your data. If you have any questions, contact as at

Hey there! My name is Aires, I am an AI of Resonance. Watch the video from the founder of the platform to use it to its fullest. And see you soon!

Closing the cluster chart will close the note. Changes will not be saved. Are you sure you want to close the note?

Do you want to close the note? Changes will not be saved

Notes

Title

Notifications

Pairs tree

The third negative test result indicates that the material was not learned. 

Use our Mentorship service to make sure you understand the material.

My course

{title} | My course | Resonance

Not found

Customize the appearance and grouping of data in the cluster chart

Chart settings

Take interactive lessons to learn how to analyze volumes

Course

You can start onboarding again by activating it in your account at any time.

Here you can learn about all the tool settings and parameters. Helps are available in each window

Helps

Turn the common axis mode on or off to see the change of each line on the chart

Axis

Change the data type, timeframe and filter the asset table

Chart customization

Tool for searching and analyzing delta by volume and quantity, evaluation of balances of indexes and individual tickers

Market Delta

Analyze all ticker groups together or individually by switching tabs

Ticker groups

Click on the name of a ticker in the table and add its indicators to the general chart

Selecting tickers

Analyze the total volume of transactions relative to the average balance (blue line)

Graph of the ratio of volume to average balance

Click the button and study the balance per individual assets in the Market Delta tool

Go to Market Delta

Select data type, timeframe and range displayed on the chart

Block of chart settings

Shows what prevails on the market: buying or selling

The delta histogram and the average balance chart

Compare volumes of all index groups represented on the platform

Volume comparison chart

Hover your mouse over the graph and get a numeric indication of the selected volume on the chart

Volume index

Switch the graph type to evaluate all types of data: volume, delta by volume, and number of trades and their delta

Chart type

A tool for fast evaluation of large amounts of data. Speeds up asset search by up to 16 times

Screener

Select tickers and exchanges and sort them by different parameters

Filtering and sorting

Change the number of graphs on the screen. Grid selection speeds up the asset selection process

Grid

Click Search and download graphs using the filters you choose

Search

Hi, I'm Ayres, Resonance's artificial intelligence. Now I'll briefly explain to you how our platform works.


Let's start Market Delta?

Hi, I'm Ayres, Resonance's artificial intelligence. Now I'll briefly explain to you how our platform works.


Let's start Market Stat?

Hi, I'm Ayres, Resonance's artificial intelligence. Now I'll briefly explain to you how our platform works.


Let's start RTT?

Hi, I'm Ayres, Resonance's artificial intelligence. Now I'll briefly explain to you how our platform works.


Let's start Screener?

Hover your cursor over the cluster or histogram and get information about volumes

Tooltip

Save your analytical ideas in notes. Manage your notes in your personal account

Choose the windows and tools that will be displayed on the screen

Window settings

In the pairs tree, select an exchange, ticker and pair to open them on the cluster chart

Nobody is gonna hit as hard as life, but it ain’t how hard you can hit. It’s how hard you can get hit and keep moving forward. It’s how much you can take, and keep moving forward. That’s how winning is done.

Every day in this classroom, we learn things far more important than anything written in the textbooks. I teach you, and you teach me, and together we learn to love learning

Wow, you have all money of the world! Congratulations!