Bid-ask spread — meaning explained

Bid-ask spread: The gap between buying and selling price.

What it means

Buyers offer slightly less than sellers ask. The gap is a hidden cost, and it's wider on rarely traded investments.

Category

Markets — part of the free InvestED Academy investing glossary for teens.

See it in action

Practise with real prices and fake money in the market simulator, or start the free course at module one.