Bid-Ask Spread
/ˈbɪd æsk sprɛd/
Definitions
- (n.) The difference between the highest price a buyer is willing to pay (bid) and the lowest price a seller is willing to accept (ask) for an asset, relevant in securities and commodities trading.
The bid-ask spread narrowed as market liquidity improved during the trading day.
Forms
- bid-ask spread
Related terms
See also
Commentary
In legal contexts, understanding bid-ask spread aids in assessing fair market value and market manipulation issues.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.