Basics
What is Bid-Ask Spread?
The gap between what buyers offer and what sellers want
Full Explanation
The bid is the highest price buyers will pay. The ask is the lowest price sellers will accept. The difference between them is the spread — this is a cost of trading. Tight spreads = more liquid market.
Real-World Example
Bid $99.98, Ask $100.00 = $0.02 spread. That's your cost to enter and exit.
Pro Tip
High spreads on small stocks can silently eat your profits.
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