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Bid-ask spread: definition and meaning

The spread is the gap between the highest price buyers will pay (bid) and the lowest price sellers will accept (ask).

Why it matters

A wide spread is an extra cost when you trade.

Related terms

• Order book
  An order book is a live list of buy and sell orders at different prices for a market.…
• Liquidity
  Liquidity is how easily an asset can be bought or sold without moving its price much.…

Educational content only, not financial advice.