bid-ask spread

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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-ask spread

See spread.
References in periodicals archive ?
The agreement is expected to lead a narrowing of Depa's bid-offer spread, lower volatility, larger trades, increased daily volumes, larger volumes being available to buyers and sellers, reduced transaction costs, and more efficient pricing.
This allows for expanded trading activity from participants, who are now able to trade without being forced to cross the bid-offer spread.
Instead, they should either charge a clear fee or at least include a bid-offer spread depending on whether a client is buying or selling the currency concerned.
The company credited the turnover milestone to growth in momentum of trading activity, largely due to narrow bid-offer spread and higher liquidity of its futures.
However, active customers' departures from MP in the past one year and reduced bid-offer spread lowered its profitability.
The funds fall into S&P Fund Services' Index sector, a unique sector where the internal tracking error, total expense ratio and the bid-offer spread are examined.
Whilst PLUS gives us the national recognition and access to critical mass, the order driven systems used by investbx reduce the impact of market makers and removes the bid-offer spread.
Whilst PLUS gives us the national recognition and access to criticalmass, the order-driven systems used by Investbx reduce the impact of market makers and removes the bid-offer spread.
In this case, the bid-offer spread is 3 points (each 'point' refers to 0.
Clients can bet directly against each other with no bid-offer spread that characterises traditional operations.
A potential investor taking physical delivery also needs to be aware that buying and selling coins and ingots attracts a sizeable bid-offer spread.
In doing so, the dealer earns the difference between the bid and offer prices, referred to as the bid-offer spread.