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Message:: [QUOTE="Marshall, post: 1037713, member: 21705"]One of the problem is a mixing of market terminology and business terminology. The great explanation already given involves the operation in a commodities market. They work on huge volumes and the markets have a preset price structure for licensing the brokers. This permits the brokers to seek transactions without the encumbrance of margins for profit which they get from their clients. They charge the clients an agreed amount and terms are flexible. A business, on the other hand, must make a margin from the operation of the business. They BUY (not Bid) for a price which permits them SELL (not ask) to cover expenses plus a PROFIT. Some businesses want to pretend they're a market and mix up the terminology. Now the use of bid sheets just further mixes up the terminology because it is used to convey both wholesale and resale pricing information. You can't buy at bid and then sell at bid, even wholesale. So a wholesale price is usually just a little above Bid and a retail price can usually be done a little below ask. Both permit a dealer to turn a coin quicker and thus permit them to sell at the reduced margin. 10 sales at half the margin is just as good as 5 sales at full margin and both are better than no sales at all.[/QUOTE]