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bid-ask spread

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Financial Dictionary

Bid-Ask Spread

The amount by which the ask price exceeds the bid.

Investopedia Commentary

For example, if the bid price is $20 and the ask price is $21 then the "bid-ask spread" is $1.

Related Links

Stock Basics Tutorial
Getting to Know Stock Exchanges

See also: Ask, Bid, Crossed Market, Inside Quote, Locked Market, Market Maker Spread, Market Versus Quote, Spread

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Cite This Source
Spread Trading
Trade Stocks, Options, Futures and Bonds Online with optionsXpress.
www.optionsXpress.com
thinkorswim-Official Site
Rated #1 Online Broker by Barron's Open an Account Today and See Why!
www.thinkorswim.com
Financial Dictionary

bid-ask spread

See spread 3.

Wall Street Words: An A to Z Guide to Investment Terms by David L. Scott.
Copyright © 2003. Published by Houghton Mifflin.
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