Market basics · Glossary
Bid-ask spread
The difference between the best buy and best sell price.
Definition and explanation
The bid is the highest price buyers currently offer; the ask is the lowest price sellers currently request. The spread between them is a cost of trading and a proxy for liquidity. Spreads can widen during volatile or thin periods, so a quoted price may differ from the price actually achievable in size.
Example
If the best bid for a pair is $99.9 and the best ask is $100.1, the spread is $0.2 for that size level.
Educational information only. Trading terms and contract mechanics can vary by venue and market. Verify the rules of the provider you use.