Impact Cost and Ideal Price

T

Thirumalai

New Member
#1
#1
In the order book of the stock market, suppose a stock trades at bid 99 and ask 101 and the ideal price is 100. I know that it the average of the ask and bid prices. Now my questions are

Q1) What did this Ideal price denotes to an investor/trader?
Q2) What can we understand from the ideal price?
Q3) What is meant by impact cost?

Please explain me in simple/basis terms with an example.
 
R

rajeshn2007

Well-Known Member
#2
#2
Thirumalai said:
In the order book of the stock market, suppose a stock trades at bid 99 and ask 101 and the ideal price is 100. I know that it the average of the ask and bid prices. Now my questions are

Q1) What did this Ideal price denotes to an investor/trader?
Q2) What can we understand from the ideal price?
Q3) What is meant by impact cost?

Please explain me in simple/basis terms with an example.
Click to expand...
Hi,
there is nothing like ideal price. are you asking about fair value of the stock?
 
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