Listen to a Business English Dialogue About Inside market
Charles: Hi Ariana, have you ever heard of the term “inside market” in finance?
Ariana: No, Charles, I haven’t. What does it mean?
Charles: It refers to the best bid and ask prices currently available for a particular security, which are usually displayed on a stock exchange’s trading system.
Ariana: Oh, I see. How is the inside market determined?
Charles: The inside market is determined by the highest bid price from buyers and the lowest ask price from sellers, reflecting the current supply and demand for the security.
Ariana: That makes sense. Why is the inside market important for traders?
Charles: Traders use the inside market to assess the current market sentiment and make informed decisions about buying or selling a security.
Ariana: Got it. Can the inside market change frequently throughout the trading day?
Charles: Yes, it can change rapidly as new buy and sell orders are entered into the market, reflecting shifts in supply and demand.
Ariana: Are there any other factors that can affect the inside market?
Charles: Market news, economic indicators, and changes in investor sentiment can all influence the inside market by altering supply and demand dynamics.
Ariana: Thanks for explaining, Charles. It’s interesting to learn about the intricacies of the stock market.
Charles: You’re welcome, Ariana. Understanding the inside market can help traders navigate the complexities of trading more effectively. Let me know if you have any more questions.