Bid-Ask Spread



Next video:
Loading the player...

Find out more about this frequently referenced, but often misunderstood, term used to describe the price at which a stock is bought or sold at.

Related Articles
  1. Economics

    What is a Market?

    Market is a broad term with varied definitions, but essentially, it’s a physical or virtual location where goods and services are bought and sold.
  2. Investing

    Penny Stocks

    Learn more about this cheap stock and how its high risk nature, large bid-ask spreads and lack of liquidity may not make it the most wise investment.
  3. Retirement

    Introduction To Annuities: Conclusion

    Though annuities started out as fairly simple investing and income vehicles, they've evolved into complex products that can be misunderstood and misused in the financial marketplace. Still, with ...
  4. Options & Futures

    Option Spreads: Tips And Things To Consider

    By John Summa, CTA, PhD, Founder of OptionsNerd.comNow that you have obtained a solid foundation for underlying option spreads, here are some tips on how to use them. In this section, we'll ...
  5. Trading Strategies

    Disadvantages of Pairs Trading

    Aside from the risks associated with pairs trading, there are a number of disadvantages to this investment technique of which traders should be aware. Perhaps the most obvious disadvantage is ...
  6. Investing

    The Truth About Moving Averages

    Why does volatility matter? Because for the vast majority of investors, buy and hold is a fallacy.
  7. Stock Analysis

    Make An Extra $35K A Year In The Most Misunderstood Financial Market

    I want to let you in on a secret: Wall Street doesn't make most of its money from the stock market.#-ad_banner-#While trading equities constitutes a large part of "big banking," ...
  8. Taxes

    Calculating The Mortgage Interest Tax Deduction

    While the mortgage interest tax deduction is a cherished American tax break, it’s perhaps the most misunderstood aspect of homeownership.
  9. Forex Education

    Accounting Basics: Introduction

    By Bob Schneider Accounting is a glorious but misunderstood field. The popular view is that it's mostly mind-numbing number-crunching; it certainly has some of that, but it's also a rich intellectual ...
  10. Options & Futures

    Vertical Bull and Bear Credit Spreads

    This trading strategy is an excellent limited-risk strategy that can be used with equity as well as commodity and futures options.
Hot Definitions
  1. MACD Technical Indicator

    Moving Average Convergence Divergence (or MACD) is a trend-following momentum indicator that shows the relationship between ...
  2. Over-The-Counter - OTC

    Over-The-Counter (or OTC) is a security traded in some context other than on a formal exchange such as the NYSE, TSX, AMEX, ...
  3. Quarter - Q1, Q2, Q3, Q4

    A three-month period on a financial calendar that acts as a basis for the reporting of earnings and the paying of dividends.
  4. Weighted Average Cost Of Capital - WACC

    Weighted average cost of capital (WACC) is a calculation of a firm's cost of capital in which each category of capital is ...
  5. Basis Point (BPS)

    A unit that is equal to 1/100th of 1%, and is used to denote the change in a financial instrument. The basis point is commonly ...
  6. Sharing Economy

    An economic model in which individuals are able to borrow or rent assets owned by someone else.
Trading Center