What Is Bid-Ask Spread?
Definition and plain-English explanation of "Bid-Ask Spread"
The bid-ask spread is 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 highly liquid stocks like Apple, the spread might be just $0.01. For less liquid small-cap stocks or crypto, it can be much wider. The spread represents a hidden cost of trading.
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