What it means
The spread is a basic transaction cost and a quick signal of market tightness or looseness.
What to watch
Spreads often widen during thin liquidity and volatile conditions, which can quietly change trade economics.
Glossary
The difference between the highest bid and lowest ask at a given moment.
The spread is a basic transaction cost and a quick signal of market tightness or looseness.
Spreads often widen during thin liquidity and volatile conditions, which can quietly change trade economics.