Author of this content has low reputation.

LeoGlossary: Bid-Ask Spread

Words
99
Reading
1 min
Listen
Play
4y

How to get a Hive Account


The difference between the bid and the ask prices.

For assets where there is a lot of liquidity, the bid-ask spread will be tight. However, when securities have low liquidity, this can get rather wide. The best example of this is real estate where a property could see a big separation between buyer and seller.

High volume assets, such as stocks, will often see the little difference between market and limit orders. This is not the case with low liquidity.

General:

LeoGlossary: Bid-Ask Spread | Ecency