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 ?
Alerts are automatically triggered, when certain thresholds for changes in traded prices, bid-ask spreads and order book resilience are exceeded.
In the small traders' transactions examined by the researchers, it was found that the average quoted half bid-ask spread for the relevant bond was 0.
However, we document a more significant rise in bid-ask spreads in the United States during the ban, driven primarily by an increase on the ask side of the market due to the relative scarcity of long sellers in the United States.
Confronted with the potential loss, the liquidity providers may widen the bid-ask spread to avert such loss.
Another key issue for the IILM Sukuk, which are expected to have maturities of up to one year, will be their bid-ask spreads in the secondary market.
Bid-ask spread has been explained in a simple manner with complicated models have been explained in separate appendices.
t-1]) which may be attributed to risk premium or bid-ask spread or trend specific to certain specific periods, and a random component.
Using this relationship, Harris estimates that the impact of reducing the minimum tick size to 1/16 would be accompanied by both lower bid-ask spreads and lower quoted depth.
Measures such as the bid-ask spread, quote size, trade size, and price impact can now be used to assess and track liquidity more effectively.
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.
You also give up a lot of liquidity when something goes on the Bulletin Board because the bid-ask spread is larger.