Bid-asked spread

Bid-asked spread

The difference between the bid and the asked prices.

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.
References in periodicals archive ?
I think the clearest case for [caring] is the collapse of the bid-asked spread," Whitcomb declares.
The S&P SmallCap 600 Index is comprised of 600 domestic stocks chosen by S&P on the basis of market size, liquidity, bid-asked spread, ownership, share turnover, number of no trade days and industry group representation.
The S& SmallCap 600 Index consists of 600 domestic stocks chosen for market size, industry group representation and liquidity, defined as bid-asked spread, ownership, share turnover and number of no trade days.
Many financial markets turned illiquid, with wider bid-asked spreads and heightened price volatility, and issuance was disrupted in some private securities markets.
Determinants of Bid-Asked Spreads in the Over-the-Counter Market.
While average bid-asked spreads appeared to widen over this period, the average credit quality of the 250 most traded entities at the end of September remained at 'BBB-', showing relatively little movement since Fitch's last CDS roundup report.
The government securities market spans a wide range of securities, from the extremely liquid, so-called on-the-run Treasury securities, for which bid-asked spreads are razor-thin, to the more exotic and sometimes tailor-made hybrids and derivatives, for which a fair markup could be sizable.