Glossary
Bid-ask spread
The gap between the highest price a buyer is offering (bid) and the lowest price a seller is asking (ask).
Every order book has two sides. The bid is the best price someone is willing to pay right now, and the ask (or offer) is the best price someone is willing to sell at. The difference between them is the spread.
A buyer who wants an immediate fill pays the ask, and a seller who wants one receives the bid. The spread is therefore a built-in cost of trading on demand.
Large, heavily traded stocks and major crypto pairs usually have narrow spreads. Small or thinly traded assets, and any market during sudden news, tend to have wider ones.
Related terms
For education only, not financial advice. Crypto assets and stocks are volatile, and leveraged positions can lose more than the money you put in.