Bid and ask

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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 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.

References in periodicals archive ?
The high volume of trading and narrow bid-ask spreads also help make Treasury rates reliable reference rates for pricing and analyzing other securities.
You also give up a lot of liquidity when something goes on the Bulletin Board because the bid-ask spread is larger.
Prior research documents an elevation in bid-ask spreads at the open and close of trading in futures markets.
The bid-ask effect imparts an upward bias in returns computed from observed closing prices rather than market prices.
Robert Neal, Indiana University, and Simon Wheatley, University of New South Wales, "Adverse Selection and Bid-Ask Spreads: Evidence from Closed-End Funds"
The BID-ASK spread in the foreign exchange market represents equilibrium prices at which banks buy and sell currencies.
This market is the deepest and broadest of all securities markets, offering widespread economic benefits by permitting transactions of enormous size to be conducted at razor-thin bid-ask spreads.
3K Jun 20 calls trade in Range Resources - including a 10K block for 33c when bid-ask was 25 to 35c - and bullish positions in June calls are being opened one week before a substantial number of March upside calls are set to expire: there's 27.
The European Commission has found that four international banks, RBS, UBS, JP Morgan and Credit Suisse, operated a cartel on bid-ask spreads of Swiss franc interest rate derivatives in the European Economic Area (EEA).