Bid/offer spread
The bid/offer spread is the difference between the bid and the offer.
.
If the bid price is $10 and the offer (ask price) is $9 then the spread is $1.
The bid-ask spread in currency trading is usually the smallest due to the enormous liquidity of the foreign exchange market. Less liquid assets such as penny dreadful stocks will have wider spreads due to the lack of liquidity.
.RELATED TERMS
Free newsletter
Click here to receive TheBull's free newsletters on stocks, trading, investing and more.
- GM shares rise despite loss, tough... 25.10.2017 04:45 PM
- Takata close to filing for... 16.06.2017 12:16 PM
- Australia power grid leased to... 11.05.2017 03:35 PM
- Asian traders on edge ahead of key... 24.03.2017 04:07 PM
- Hong Kong stocks end morning... 14.03.2017 03:43 PM
- Asian markets extend global rally... 13.02.2017 03:56 PM
MoreRELATED ARTICLES
New stock market crash, a pattern?
The third industrial revolution started around 1940 and is nearing its end.
4 hot Hong Kong stocks
Joseph Lai at Platinum Asset Management expects data-related revenues to skyrocket from a low base...
Top Chinese property and oilfield service stocks
Two Asian analysts share their top picks within China's property and oilfield services sectors.
RESOURCES & OFFERS
Free Investing Newsletter on Asian and Australian markets. Be ahead of the curve with TheBull.
Read more
Join CommSec now and get $600 free brokerage.
Find out more