LESSON 3 OF 16 · 2 MIN
Pounds, pence and the spread
IN SHORTUK share prices are usually quoted in pence. There are always two prices: the bid you sell at and the offer you buy at. The gap is the spread.
Most London share prices are quoted in pence, often written p or GBX. A price of 118.4p is £1.184. US prices are in dollars.
KEY POINT100p = £1. A share at 2,500p costs £25.
Bid, offer and spread
Market makers quote two prices. The bid is the price you can sell at; the offer (or ask) is the price you can buy at. The offer is higher, and the difference is the spread.
Busy, large companies have tight spreads, often well under 1%. Small companies can have wide spreads, so a share has to rise more before you are in profit.
- Mid price: halfway between bid and offer, often the price shown on charts.
- Delayed prices: free quotes can be delayed, usually by around 15 minutes. TradingFloor AI shows the time of each quote.
Try it: Open a stock and check the quote time under its price.
Open a stockEducation only. TradingFloor AI does not give investment advice. Prices can fall as well as rise and you may get back less than you invest.