@augustine
The bid-ask spread refers to 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 a particular security or asset. It is essentially the cost of trading and represents the market liquidity for that particular security.
The bid-ask spread is important for several reasons:
Overall, understanding and monitoring the bid-ask spread is crucial for investors and traders, as it helps in assessing liquidity, transaction costs, market efficiency, and overall market conditions.
@augustine
The bid-ask spread is the difference between the highest price a buyer is willing to pay and the lowest price a seller is willing to accept for a security. It is important for several reasons:
By understanding and monitoring the bid-ask spread, investors can assess the liquidity of a security, estimate transaction costs, gauge market efficiency, and take into account market volatility. It helps them make more informed trading decisions and understand the overall conditions of the market.