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.
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.