I understand how supply and demand works but I’m confused as to who actually is in charge of setting the price to display to all trading platforms. Since the stock price is constant across all trading platforms, what algorithm or system is in place to ensure there are no clashes or discrepancies between said platforms? Is there one dominating platform that monitors all stock prices which other platforms refer to such as the NYSE?
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The bid price is the highest price someone declared they will buy the stock, the ask price is the lowest price someone declared they will sell the stock.
All brokers on the same exchang share all the information about their current bid and ask. So it’s the same in all brokers’ platform. Other exchange may have different prices, but you’re unlikely to use another exchange since they are usually set up in another country and another currency. The US has multiple exchanges, but not the same stocks on each of them. Stocks on 2 exchanges or more can be used to get money in another currency. It’s typically much cheaper than using financial institutions exchange rates.
To move the bid price you need to bid higher than the current bid, but lower than the current ask or to ask at the bid price or below with enough stocks to satisfy all the bids at that price.
To move the ask price you need to ask lower than the current ask, but higher than the current bid or to bid at the ask price or above for enough stocks to satisfy all the akss at that price.
You have 10 apples.
Bob has 10 apples.
Bob sells his apples to me for $1 each.
Apples are worth $1 each.
You try selling them for $2 each and I buy them
Apples are worth $2 each
I sell the 20 apples I have for $5 each
Apples are worth $5 each.
Stock prices are literally supply and demand and based on how many and who is buying for what price.
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