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What is the meaning of bid-ask spread in the context of financial markets?

Edyth Anderson ∙

Lvl 10

∙ 4mo ago

Updated: 2/16/2025

The bid-ask spread in financial markets refers to the difference between the highest price a buyer is willing to pay for a security (bid) and the lowest price a seller is willing to accept (ask). It represents the cost of trading and the liquidity of the market.

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∙ 4mo ago

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What is the meaning of bid-ask spread in the context of financial markets?

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