What is Bid–ask spread?
The gap between the highest buy order and the lowest sell order: a cost you pay to trade now.
If the best bid is $100.00 and the best ask is $100.05, the spread is five cents. A round trip at market prices starts five cents behind.
Tight spreads indicate a busy, competitive market. Wide spreads are common on thin coins and just after volatility, and they make small price moves meaningless.
Related terms
- Order bookTrading
The standing bids and asks at each price on an exchange, and the size waiting there.
- SlippageTrading
The difference between the price you expected and the price you got, from moving the book yourself.
- LiquidityTrading
How easily you can buy or sell without moving the price: depth, spread and turnover together.