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Bid and Ask
(redirected from Bid-ask)

   Also found in: Wikipedia 0.01 sec.
Bid-Ask Spread
On an exchange, the difference between the highest price a buyer of a security or other asset is willing to pay and the lowest price a seller is willing to offer. Generally speaking, the more liquid an asset is, the lower the bid-ask spread is. As a result, currency, which is considered the most liquid asset, has an extremely low bid-ask spread.

Bid and ask. Bid and ask is better known as a quotation or quote.

Bid is the price a market maker or broker offers to pay for a security, and ask is the price at which a market maker or dealer offers to sell. The difference between the two prices is called the spread.



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After adjusting for bid-ask spread and a non-linear function of durations, tick by tick returns are distributed independently of durations, with volatility that admits a GARCH process.
t-1]) which may be attributed to risk premium or bid-ask spread or trend specific to certain specific periods, and a random component.
``We strongly believe that maintaining our Nasdaq SmallCap Market listing is in the best interest of all shareholders as it provides greater share liquidity by the way of potentially higher trading volumes, lower bid-ask spreads, and a higher number of market makers,'' Ghauri said in a statement.
 
 
 
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