The Bull

Thursday 24

August, 2017 3:23 AM



Bid/offer spread

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What does it mean?

The bid/offer spread is the difference between the bid and the offer.

 

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TheBull says...

If the bid price is $10 and the offer (ask price) is $9 then the spread is $1.

The bid-ask spread in currency trading is usually the smallest due to the enormous liquidity of the foreign exchange market. Less liquid assets such as penny dreadful stocks will have wider spreads due to the lack of liquidity.

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