bid ask spread

Definitions

Economics

  • (written as bid/ask spread)
    The difference between the price that a buyer must pay on a market and the price that a seller will receive for the same thing. The difference covers the cost of, and provides profit for, the broker or other intermediary, such as a bank on the foreign exchange market.

Forex

  • The price that is actively quoted to purchase currency from an offeror. The bid may or may not be listed on Forex but typically represents the highest available offer to buy the security.
  • (written as Bid/Ask Spread)
    The listed difference between the prices a buyer is offering (bid) and the seller is asking (offer) for a currency pair.
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