The difference between the highest price a buyer is willing to pay (bid) and the lowest price a seller is willing to accept (ask).
The difference between the highest price a buyer is willing to pay (bid) and the lowest price a seller is willing to accept (ask).
The bid-ask spread reflects market liquidity and transaction friction. Market makers earn the spread as compensation for providing immediate liquidity.
Narrow spreads indicate high liquidity; wide spreads indicate illiquidity.
Direct cost incurred by market orders.