Bid-Ask Spread
trading
The difference between the highest bid and lowest ask price for an asset.
1
definition
The bid-ask spread represents transaction costs and liquidity conditions. Tight spreads indicate good liquidity; wide spreads imply higher slippage risk.
Conceptual links
Related terms
3 linkedExplore connected entries beyond the alphabetical index.
Liquidity
→How easily an asset can be bought or sold in size without causing a large price move.
finance
trading
Market Order
→A market order buys or sells immediately at the best available prices, prioritizing execution over price certainty.
trading
Limit Order
→An order to buy or sell an asset at a specified price or better, without guaranteeing execution.
trading
All terms and definitions may update as the Cryptionary improves.
