The difference between the highest price buyers will pay (bid) and lowest sellers will accept (ask).
Spread is a transaction cost — you typically buy at ask and sell at bid. Tight spreads (pennies) indicate liquid markets; wide spreads indicate illiquidity. Market makers profit from spreads.
The difference between the highest price buyers will pay (bid) and lowest sellers will accept (ask). Spread is a transaction cost — you typically buy at ask and sell at bid. Tight spreads (pennies) indicate liquid markets; wide spreads indicate illiquidity. Market makers profit from spreads.
In markets, Bid-Ask Spread is one of the building blocks investors use to compare opportunities and assess risk. Understanding it helps you read research notes, earnings reports, and market commentary without getting lost in jargon.
Spread is a transaction cost — you typically buy at ask and sell at bid. Tight spreads (pennies) indicate liquid markets; wide spreads indicate illiquidity.
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