Bid-ask spread
The gap between the best buying and selling prices: a hidden cost of every trade.
Definition
The gap between the best buying and selling prices: a hidden cost of every trade.
Why it matters
In markets, this notion helps explain how prices are formed and why they move from one session to the next.
How to read it in the news
In the news, always look at three things: the level, the change over the session or the week, and how it compares with the average of recent years. A lone figure says little; its trend says a lot.
Notitia newsroom · education, not investment advice.