Bid/Ask Spread

August 26th, 2017 by Kara in

This is the difference between the bid and ask prices.  Basically, the spread is the difference between the lowest price an owner will sell for and the highest price a buyer is prepared to pay for the security.  The primary reason for the difference in price is the amount of liquidity in the asset classes.  The more liquid the asset, the less the spread is likely to be.

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