Bid–ask Spread
/ˈbɪd æsk sprɛd/
Definitions
- (n.) The difference between the highest price a buyer is willing to pay for an asset and the lowest price a seller will accept, reflecting liquidity and transaction cost in financial markets.
The bid–ask spread widened during market volatility, increasing trading costs for investors.
Forms
- bid–ask spread
- bid–ask spreads
Related terms
See also
Commentary
In legal contexts, the bid–ask spread can influence contractual terms related to financial transactions, securities trading, and valuation disputes.
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.