Spread Indicator

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Dictionary Says

Definition of 'Spread Indicator'

An indicator that shows the difference between the bid and ask price of a security, currency or asset. The spread indicator is typically used in a chart to graphically represent the spread at a glance, and is a popular tool among forex traders. The indicator, displayed as a curve, shows the direction of the spread as it relates to the bid and ask price. Usually, highly liquid currency pairs have lower spreads. 
Investopedia Says

Investopedia explains 'Spread Indicator'

Spreads are calculated metrics that often requires that a trader manually determine the difference between bid and ask prices. For traders trying to capture small fluctuations in the spread, determining the spread requires handling quotes with a large number following the decimal. As a result, the spread indicator fluctuates over a very narrow range.
Search results for

'Spread Indicator'

  • Bond Spreads: A Leading Indicator For Forex

    http://www.investopedia.com/articles/forex/05/041305.asp
    ... The chart provides an even better example of bond spreads as a leading indicator. ...
    By the same token, the yield spread began to rise in the summer of 2000, but ...

  • Market Breadth: Advance/Decline Indicators | Investopedia

    http://www.investopedia.com/university/marketbreadth/marketbreadth3.asp
    ... indicator, such as a moving average or a stochastic oscillator, can be applied to
    the chart or used to smooth the signals it gives. Advance/Decline Spread A ...

  • Understanding Liquidity Risk

    http://www.investopedia.com/articles/trading/11/understanding-liquidity-risk.asp
    ... exogenous liquidity risk (a characteristic of the market which is a collection of
    buyers); a typical indicator here is an abnormally wide bid-ask spread. ...

  • Adjusting A Long Call Into A Butterfly Spread

    http://www.investopedia.com/articles/optioninvestor/10/adjusting-long-call-butterfly-spread.asp
    ... Two of the contracts represent the other leg of the butterfly spread (ie, long ... roughly
    a month and a half after the adjustment, the MACD indicator has flipped ...

  • The Basics Of Money Flow

    http://www.investopedia.com/articles/technical/03/072303.asp
    ... "[Money flow is] an indicator that calculates an indexed value based on price
    and volume for the number of bars specified in the input Length. ...

  • Market Breadth: Volume Studies | Investopedia

    http://www.investopedia.com/university/marketbreadth/marketbreadth1.asp
    ... A similar indicator called the Chaiken Oscillator further refines the accumulation/
    distribution line by calculating the spread between its three-day and 10-day ...

  • Trading Around Key Options Indicators

    http://www.investopedia.com/articles/optioninvestor/12/trading-around-key-option-indicators.asp
    ... The TED spread is the interest rate differential between the LIBOR and the US
    T-Bill rate; it is an indicator of the perceived credit risk in the economy and ...

  • Spotting A Market Bottom

    http://www.investopedia.com/articles/economics/09/spotting-a-market-bottom.asp
    ... (For further reading, see Economic Indicators For The Do-It-Yourself Investor.)
    High Yield Bonds Another indicator to watch is the high yield bond spread. ...

  • 5 Signs Of A Credit Crisis

    http://www.investopedia.com/articles/economics/08/credit-crisis-indicators.asp
    ... By looking at US Treasuries, LIBOR, the TED spread, commercial paper and high ... While
    no single indicator is more important than another, the correlation of all ...

  • Conference Board: Composite Index Of Leading Indicators ...

    http://www.investopedia.com/university/conferenceboard/conferenceboard2.asp
    ... The Standard & Poor's 500 stock index - The S&P 500 is considered a leading indicator
    because changes in stock prices ... Interest rate spread (10-year Treasury vs ...

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