Bid-Ask Spread

Difference between bid and ask price.

For example, if a stock's current bid price is 52.36 and current ask price 52.39, the bid-ask spread is $0.03.

The size of bid-ask spread is inversely related to liquidity (more popular and heavily traded stocks tend to have narrower bid-ask spreads).

The size of bid-ask spread is very important for transaction costs in the form of slippage.

By remaining on this website or using its content, you confirm that you have read and agree with the Terms of Use Agreement.

We are not liable for any damages resulting from using this website. Any information may be inaccurate or incomplete. See full Limitation of Liability.

Content may include affiliate links, which means we may earn commission if you buy on the linked website. See full Affiliate and Referral Disclosure.

We use cookies and similar technology to improve user experience and analyze traffic. See full Cookie Policy.

See also Privacy Policy on how we collect and handle user data.

© 2024 Macroption