What is Bid-Ask Spread?
The gap between the highest buy price and the lowest sell price in a market.
best ask − best bid · 12 bps
The bid-ask spread is…
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In real work
Bid-ask spread widened to 12 bps. Route flow to the venue with tighter quotes.
In the illustration
The best bid ($99.94) and best ask ($100.06) slide to the front of their racks; a feeler gauge slides into the gap between them and its dial settles on 12 bps.
Chart the bid-ask spread in your finance platform for the ten names we trade most, by hour, and flag where it widens past 10 basis points.
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