What is a Spread?
Investor Trading Academy
Published at : 12 Sep 2021
Published at : 12 Sep 2021
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The price difference between a securities’ sell (bid) and buy (ask) price. All markets including foreign exchange, futures and equity markets have a spread. The size of the spread reflects the market’s liquidity and transparency. For example when there are a lot of buyers and sellers in the market, the spread tends to be smaller, whereas fewer buyers and sellers make the spread larger.
By Barry Norman, Investors Trading Academy.
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