[{"data":1,"prerenderedAt":66},["ShallowReactive",2],{"term:bid-ask-spread":3},{"term":4,"related":53},{"id":5,"title":6,"body":7,"category":35,"description":36,"extension":37,"faq":38,"meta":39,"navigation":40,"path":41,"related":42,"seo":46,"stem":47,"takeaways":48,"__hash__":52},"terms\u002Fterms\u002Fbid-ask-spread.md","Bid-Ask Spread",{"type":8,"value":9,"toc":29},"minimark",[10,15,19,22,26],[11,12,14],"h2",{"id":13},"understanding-bid-ask-spread","Understanding Bid-Ask Spread",[16,17,18],"p",{},"The bid is the best price a buyer is offering; the ask is the best price a seller is asking. The spread is a cost of trading: buying at the ask and immediately selling at the bid loses the spread.",[16,20,21],{},"Heavily traded securities have narrow spreads; thinly traded ones have wide spreads.",[11,23,25],{"id":24},"example","Example",[16,27,28],{},"If a stock's bid is $50.00 and its ask is $50.05, the spread is 5 cents.",{"title":30,"searchDepth":31,"depth":31,"links":32},"",2,[33,34],{"id":13,"depth":31,"text":14},{"id":24,"depth":31,"text":25},"trading","The difference between the highest price buyers will pay and the lowest price sellers will accept.","md",[],{},true,"\u002Fterms\u002Fbid-ask-spread",[43,44,45],"liquidity","limit-order","market-order",{"title":6,"description":36},"terms\u002Fbid-ask-spread",[49,50,51],"The spread is ask minus bid.","It is a hidden cost of every trade.","Liquid markets have narrow spreads.","-73DNgtzJSkDR1-YgVlcIGXlnd8-RSkmloHAPM8LHzw",[54,58,62],{"title":55,"description":56,"path":57},"Limit Order","An order to buy or sell only at a specified price or better.","\u002Fterms\u002Flimit-order",{"title":59,"description":60,"path":61},"Liquidity","How quickly an asset can be turned into cash without moving its price.","\u002Fterms\u002Fliquidity",{"title":63,"description":64,"path":65},"Market Order","An order to buy or sell immediately at the best available price.","\u002Fterms\u002Fmarket-order",1793374004604]