What is Bid-Ask Spread?
The bid-ask spread is the gap between the highest bid and the lowest ask. It is a real cost of trading, because if you buy at the ask and immediately sell at the bid, you lose the spread. Liquid markets tend to have tight spreads while thin or volatile markets have wider ones.
Why Bid-Ask Spread matters
It is a hidden cost on every round trip, and a wide spread quietly eats into results, especially for frequent trading.
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